I think I’ve hit an exciting new milestone in my personal finance development: I actually used my emergency fund to pay for an emergency!
The backstory on this is my lengthy love-hate (mostly meh-hate) relationship with my EF. In short, I have had trouble getting excited about an EF. I didn’t have one for a while, then I slowly built it up to $5000 in the world’s most boring savings campaign, then I promptly nearly drained it in order to fill up my Roth IRA when the markets were very low, and at some point in there I discovered that I would rather be in debt than use my EF cash.
So it actually totally does feel like progress that this week I was very uncomfortable with carrying a $775 car repair on my credit card into next month — so uncomfortable that I took the cash out of my EF and paid the credit card right away. I am expecting a big stipend check sometime in the next few weeks (long story, it’s for an academic project) and plan to fill the EF right back up again. But I’d originally intended to just keep the money sitting on my card and pay for it out of the stipend check. It kind of feels cool that in the end I just couldn’t stand it. I wanted my card back to “normal” — which is now hovering between $0 and $200, instead of routinely being up in the $1000-2000 range. And in order to pay it off, I didn’t have to scramble, or dip into my down payment savings, because I literally had an entire savings account set aside to handle just such situations.
Y’all, I think I get why this is cool now.