Emergency Savings Account

Do you have an emergency savings account for unexpected expenses? Years ago before credit cards were around, we paid cash for everything. If something needed repairing or replacing in the house we would dip into our emergency savings account instead of having to get a loan. Once credit cards came about I checked the different ones available and we got one without any annual fees. We also never pay interest since we pay the statement balance in full. Now the thing about credit cards, you can get in a deep hole if you don’t pay the balance when the statement arrives. The hole will only get deeper if you only pay the minimum and before you know it you will be paying on something forever! http://themarthareview.com/earn-money-when-using-credit-cards/

Last month our emergency savings account got a workout! First the washer and dryer went, next the oven and then the refrigerator. Just when we thought we were in the clear our upstairs AC/heat pump died. But considering most were the original appliances from when we purchased the house in 1999. But did they all have to go at once?? If it wasn’t for our emergency savings account we would have been in a pickle.

Instead, the savings we had set aside came into play. But first I charged each one on my credit card and got cash back too! When the statement arrived I paid the total amount in full from our emergency savings.

I wrote about me starting Uber Eats a few weeks ago and how in 4 weeks of delivering part time we earned enough to “repay” our emergency savings for the stove. The next 3 weeks we earned enough for half the refrigerator. But here’s the good thing, I charged the refrigerator last month but the statement for that won’t even come due until the end of September! That gives us 4 more weeks to earn the rest of the amount to either “repay” us or just pay off the card when it arrives. Either way it’s not costing us anything for the credit card, we are making money with our cash back! This is the challenge in me, I set goals and don’t stop until I’ve made them.

By putting aside a certain amount each week or month, it may save you from have to get a loan if and when you have a major repair or need to replace an appliance.