Why I Didn’t Have an Emergency Fund Until I Was 39

From Cash For Tacos

I don’t need an emergency fund. This was me for the majority of my adult life.  The thought of saving up all of that money “just in case I needed it” wasn’t very appealing.  Thankfully, I was lucky enough to have never found myself in need of an emergency fund.  It wasn’t until I was 39, five years into my personal finance journey, that I finally convinced myself that an emergency fund was essential for me.  

And I’m so glad I changed my mind. My emergency fund allowed me to easily replace an air conditioner in the middle of a humid midwest summer. And more importantly, it has given me peace of mind. 

If you are anything like past Mel and struggling to motivate yourself to tackle the emergency fund goal, this article is for you. Or if you are simply curious as to why it took me so long to have an emergency fund, read on. 

Here is why I didn’t have an emergency fund until I was 39 and why I changed my mind.  But first, a real quick explanation of what an emergency fund is.

What Is An Emergency Fund And What Is It Used For?

An emergency fund is a stash of cash that is meant to be used for an urgent need.  The keywords here are “urgent” and “need”. 

Urgent needs are considered things such as: 

• Home repairs like a flooded basement or broken water heater

• Car accident

• Veterinarian bills

• Costs of taking care of a loved one

• Medical Emergency

• Loss of income

On the flip side, emergency funds are not meant to fund our sudden wants. 

Things like:

• Last-minute vacations

• A shopping spree when you are feeling down

• New living room furniture because you are tired of your current stuff

• A new car simply because you want one

Now that we know what an emergency fund is for, let’s dive into how I convinced myself that it wasn’t a priority to create and save for an emergency fund. 

Reasons Why I Didn’t Have An Emergency Fund Until I Was 39

To continue reading, please go to the original article here:

https://www.cashfortacos.com/emergency-funds-why-i-didnt-have-one/