Rebuild The Wiggle Room

Bridgette is replacing an air conditioner tomorrow and has the cash to pay for it in the emergency fund. But how does she rebuild the emergency fund?

QUESTION: Bridgette in Knoxville is replacing an air conditioner tomorrow and has the cash to pay for it in the emergency fund. But how does she rebuild the emergency fund? Dave recommends stopping all savings until it’s replenished.

ANSWER: I would stop doing any savings and pour everything I’ve got into the emergency fund until it’s rebuilt. You’ve got some wiggle room in this budget. If you put $500 a month back, that’s 10 months. If you put $1,000 a month back, that’s five months. Somewhere in there is where you should be. It shouldn’t be any less than $500. Crank it up and make this a big deal to replenish the emergency fund because as you’ve found, it’s a weird thing to have an emergency and actually be able to pay for it. It takes some of the drama out of your life. It changes the level of stress when you’ve actually got some money. You’ve got some wiggle room in your life.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !