Job loss. Unexpected illness or injury. Theft.
When my family first decided to open an emergency fund, it was to protect ourselves against these major unexpected financial expenses. While that continues to be a reason we maintain an emergency fund, it is the smaller unexpected expenses that make this account essential to us.
As I outlined in a separate article, we learned to better understand our monthly expenses and know approximately how much we spend in a typical month. This is important to us because part of our paycheck goes to monthly expenses and the rest is automatically invested or put toward our mortgage. In order to have fairly stable monthly […]