First Quarter 2009 Rainy Day Funds Assessment

May 4, 2009
Written by Cathy

3337971092_34f469bbed The start of 2009 was rough.  I’ve tapped into my emergency fund several times due to unexpected events.

1. My company is indirectly hurt by the instability in the financial sector.  Thus, many of us took a paycut.  I took a 7.5% paycut.

Impact: Disappointed, but my goals are marginally affected.  I can still meet the minimums on all my fixed obligations (rent, food).  I can still max my retirement funds.  Some of my short term goals will be trimmed back by about 7.5% proportionally. 

2. My company is eliminating the employer match portion of my 401K in May.

Impact: Disappointed, but I will fully fund my Roth IRA first, then contribute to my 401K instead of the other way around.  Amount contributed remains the same. 

3. My dad got sick and was in the hospital in March.  Flew home the same day to help.

Impact: Spent $590 borrowed from my emergency fund for an airplane ticket.  Happy my dad is healthy and back home.  This is what emergency funds are for.

4. Didn’t read parking zone signs correctly on two separate occasions.

Impact: $45.25 in parking fees.  Avoidable, and my fault.  Still lame.

5. Bad ear infection in February.  Minor concussion bumping my head at the gym because I’m a klutz.

Impact: $160 in doctor office visits. 

I withdrew $795.25 in the past 4 months on unexpected expenses.  It was very scary with my dad briefly, but everything is ok for now.  I borrowed from myself when I needed it most, and didn’t have to worry about it later.  I paid back what I owed myself, not a creditor.  The only thing I had to worry about was what I needed to do right when I needed it.  To help my parents, I just paid for the ticket. I didn’t think whether I would be able to afford it. I just got a ticket and went.

The outlook for the rest of the year still looks pretty shakey. We’re still preparing for the worst, that we hope won’t come.

How has your emergency fund helped you recently?

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2 Responses to “First Quarter 2009 Rainy Day Funds Assessment”

  1. I just posted on the same topic!
    Only my total was over $700 for all of 5 days. :(
    I’m working on building my EF back up again.

  2. Ouch! Those car emergencies can definitely clear out balances in a single swoop. :(

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