There are a lot of things you should already know about an Emergency Fund:

  1. YOU SHOULD HAVE ONE!
  2. It should contain about 3 to 6 months of your salary
  3. It should be in a different account than your month-to-month spending. Put it in a High Interest Savings Account.

You’ve heard all of this before, and to me, it all gets boring. But my wife handed me a copy of her Parents magazine that had a new way to look at your Emergency Fund. This is especially helpful for people (like me) who have not yet started or are not too far along on their Emergency Fund.

  • Put away enough money for your insurance deductibles.
    Mine would total about $1000 for house and car. I have no idea what my health and dental deductibles are. I will have to look into it.
  • Four new tires. (Approximately $500)
    I lease our two cars, so my tires are included in the warranty. But this is a good idea in case something unexpected happens to your car, like you need new brakes, or your engine breaks down.
  • New Hot Water Heater (Approximately $500)
    This is like the car idea where you put away money for unexpected home repairs.
  • Exterminator Fee ($250)
    This will never happen to my house as I am a freak about spraying for bugs inside and outside of my house.
  • A trip to the emergency room ($500)
    If you have kids, this is a must. My daughter has not been to the emergency room … yet.

I think this is a good list to add to your Emergency Fund (6 months salary plus these). I think I will work for 3 months salary, plus these items. But if nothing happens, we can use this money for a vacation, and than pay it back afterwards. I have started my Emergency Fund, but it only has about one week’s salary in it. Hopefully if I get a new job and raise, my PTO from my old job, and my tax return, I will be well on my way,

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