Houston, We Have a Problem

Well actually there were several problems so far with changing domains over the weekend. So I’ll be posting at the backup domain location until further notice.

Actually all these little technical issues reminded me of life in general, it doesn’t ever seem to go according to plan. This is why many people often say you need an emergency fund. As many of you know I don’t keep a fund, but rather a line of credit which I can tap into instead.

Why don’t I keep a fund of cash? Partly it is I keep enough cash floating around various saving accounts that I have about $1000 slush fund at all times which can cover my insurance deductible if I truly have a major problem. Also because I don’t consider the car or house insurance coming due an emergency. Actually I don’t consider anything you can plan for in day to day life an emergency.

So what is an emergency? This will depend entirely where you live and possible costs you might face. For example, if you live in the US and have co-payment health insurance you are going to need a large cash fund to cover a major medical emergency. Yet in Canada the truly major costs are bulkly covered by health care, so if becomes a bit overkill to keep the same amount. Basically the idea of a one size for all emergency fund doesn’t work, it depends on your own situation.

So what is an emergency you have faced and how much did if cost you? If you want to share leave a comment. My story went something like this. I had a baby come ten weeks early, a leaky house roof and my lease buy out on my car all within three months for a total of $17,000 (ok I had planned for the lease buy out but the other two wiped me out before I could pay for it, so it became part of the emergency).