Remodel Or Finish The Emergency Fund?
Katherine is in the middle of saving an emergency fund and doing some work on her home. Should she slow down the emergency fund to finish the work on the house?
QUESTION: Katherine in New York City is in the middle of saving an emergency fund, and they're doing some work on their home. Should they slow down the emergency fund to finish the work on the house? Dave recommends getting the emergency fund finished before doing the work.
ANSWER: You ought to be able to save your emergency fund faster than you're doing it. It shouldn't take 18 months to come up with $24,000 making $130,000 a year. I know Long Island is expensive—been there, done that. Still, I think you need to get that done quicker. A paint job on a home almost would never qualify as an emergency. Ugly? Yes. Is it going to get worse before it gets better? You bet. If it's driving you crazy, you could just slap a couple of coats over just the rotten area, even though it's not very pretty, until you can have it professionally fixed and done 12 months from now. I'm not going to put a paint job on the exterior of the home above having an emergency fund. It's just not an emergency.