Emergency Fund Funding and Extra Payments
I’ve finally been able to start paying extra again on my single credit card debt (the Amex). I’m working on saving up enough to have a sufficient emergency fund. As soon as it’s fully funded, I’ll begin paying even more on the Amex. I’ll go from my current $200 (on the $106 minimum payment) to $400. Once I hit that, the approximately $5,600 that’s left will go quick.
There are a couple of things that could derail my plan, the first being unexpected expenses that will require me to re-fund my emergency fund any time money is used for emergencies. And I know they happen. Just a few months ago, we had to cough up an auto insurance deductible. I expect appliance repairs will come around at some point also. Our truck needed a new $100 plus sales tax battery unexpectedly just this month.
We’re at a point where we still don’t have the funds to fully fund any repair and maintenance categories in our budget. Frankly I’d rather not anyway. I’d rather just have a larger emergency fund for those kinds of things, but that’s just me.
I’ve been reading a book that I’m find quite eye-opening when it comes to organization and planning, and I’ve decided there’s definitely a point where we reach diminishing returns on our investment in pre-planning and over-organizing everything, including finances. A Perfect Mess
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