Monday, November 10, 2008

How's that E Fund coming along...?

A while back I talked about starting an E Fund. Well with hard work and automatic transfers we are almost there.
An E Fund is an Emergency Fund that you put money in to save for the future. It can go towards a unexpected expense that may come up. If you or a significant other is laid off from work this account could be used to live from. You can set your own goals and what you would use the fund for. Our goal was 3 months worth of living expenses. It's a great feeling to know that if somethings comes up you have the cash to pay for it. No worrying about where the money will be coming from and stressing about it. It's always a great idea to save. You never know what may come up in your life.

Here is how we got to this point:

1. Rentals - The rental property we bought a few years ago have been one of the best investments we have started.
2. Cable - This past summer we cut out the cable bill. We went with out for 6 months. All this money went into our e fund.
3. CC - We had one credit card balance that is now paid off. It was used for small things that added up when we bought our house. Most of that money is now going to savings and our e fund.
4. Pay with CC - We have been paying almost everything with our credit card. The balanced is paid off fully every 2 weeks or sooner. This has allowed us to see what we are spending all of our money on and we have earned free gas, gift cards, and a book light (a gift for Isaac).
5. Automatic Payments - Over the past year I read the Automatic Millionaire and realized we needed more automatic savings. Since these have been set up we have increased them several times. The money is gone from our account before we know we have it. I love Automatic!
6. Bargains - I rarely pay full price for something. Everything will go on sale at one point or another. If it's not on sale I will use a promotion code or coupon to get the price lower. This really ads to savings.
7. Determination

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