Foiled - Car Trouble

In The Plan: Savings, I wrote that I was going to wait a while before I start building our "Long-Term Emergency Fund." I mistakenly considered that Emergency Fund a buffer against lost income. Had I been paying more attention, I would have seen the value in that Emergency Fund as a buffer against unexpected expenses that overwhealm our budget.

One unexpected expense jumped into our financial picture today. I was driving from Albany to West Hartford, CT to spend a couple of days at my Reserve Unit tidying up some issues before I transfer to a new unit. As I was clearing the toll plaza in Canaan, the last toll plaza in New York before crossing onto the Mass Turnpike, my car just stopped. Luckily, the tow back to Schodack didn't set me back a dime, thanks to the AAA. I am waiting for a call on the extent of the damages.

I need to revisit our savings plan, so I can start building that Emergency Fund. As of this last paycheck, our Short-Term Emergency Fund sits at $300.41, just a couple of months away from the $500 goal. Once I hit that goal, I will shift that contribution to the Long-Term Emergency Fund.

Until next time,
Jonathan


From My Blogroll:

Karen Datko gives a simple approach to budgeting at MSN Money's Smart Spending (originally posted at The Dough Roller).

Shannon Christman talks about insulting advertising at SavingsAdvice.Com. I have to say, I agree with her assessment.