Update: I just realized my 'emergency fund' was way too small

My truck needed a $1,200 transmission repair last month and I had to put it on a credit card. That's when I saw my savings were only for small stuff, not real problems. Anyone else have a rule for how much cash they actually keep on hand?

3 comments

3 Comments

jade_miller621mo ago

Only $1,200 for a transmission repair? That's the cheapest I've ever heard of.

blair6301mo ago

Yeah, that's actually a fair point from @jade_miller62, a full rebuild is usually way more. My guess is it was a smaller fix, like a solenoid or a seal, not the whole thing. That's still a big bill that shows why the emergency fund rule exists. I keep six months of bills in cash after my own surprise furnace replacement. It's not for oil changes, it's for when real life hits hard.

the_derek28d ago

Man, blair630 is totally right about the emergency fund thing. My water heater went last winter and it was over two grand out of nowhere. It's those big, boring fixes that really wipe you out, not the small stuff you plan for.