Not literally praying for emergencies, but celebrating the achievement
of our first financial goal: saving enough for all emergencies we can
reasonably perceive. It took us a little over 6 months to set up a
fully-funded emergency fund (as Dave Ramsey would advise). The few
things we consider emergencies include: health insurance maximum
out-of-pocket copay beyond what our plan covers, 4 months minimum income
if we were both simultaneously jobless, renters insurance deductible,
auto insurance deductible and miscellaneous car repairs, and travel
anywhere in the US on short notice.
The chances of all these events happening at once are minimal, but it is
peace of mind to know that if it so happened, we would be alright.
Because those chances are small, we are confident we can handle any
other unperceived emergency too, without going into debt. In fact, we no
longer have credit cards solely held for emergency purposes. It is a
good feeling to have some control over your finances. It took a lot of
discipline and sacrifice, but we can already taste its worth.
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