I live on the East Coast, and man, what a week it’s been! Earthquake, hurricane, and tornadoes!! Like most of the people in my city, I spent time preparing to protect both myself and my property this week. That got me thinking – how often do we all take the time to prepare for unexpected financial disasters?
I set up a separate account with ING to serve as my Emergency Fund before I bought my house, and that’s been the extent of my financial emergency preparedness. Unfortunately, I’ve had a series of unfortunate and unexpected home repairs that I will have to get taken care of in the next few weeks, and they will probably end up wiping out my E-fund (you’d think that on an almost-brand-new house, major appliances and essential components of the house would last more than 5 years…). While I’m glad that I have the E-fund to be able to pay off these impending bills without having to go into debt, the thought of emptying that bank account just tears me up! What else can I do in the future to better prepare for these sort of financial emergencies? I’ve previously had a home warranty, but it was rather costly and I still had to pay a lot of money out of pocket for repairs. Any suggestions?