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Need Money from Your Emergency Fund? Ask Yourself These 3 Questions First

Your emergency fund is meant to provide you with a bit of financial shield on those rainy days – you know, the times when you have an unexpected expense, an emergency medical bill, or come up short on your monthly rent. While, yes, you have every right to access your money when the need arises, it can sometimes be difficult to determine when it’s worth dipping into your emergency fund. Straight from the financial pros at Ramsey Solutions, here are 3 questions to ask yourself before you hit that “Transfer” button.

Is it unexpected?

We know budgeting can be hard to stick to when the ups and downs of daily life threaten your wallet with unforeseen expenses. But, the keyword here is “unforeseen.” Before you take out a few hundred dollars or more from your savings, ask yourself if the circumstance in front of you was unexpected. Emergency vet bills are unexpected, but birthday or holiday gifts? Not so much. If you find that the circumstance causing you to need more cash is not unexpected, you might need to re-align your budget or look into other methods to secure the money you need, like a secondary source of income.

Is it necessary?

“Wants” and “needs” can be easy to confuse. For instance, perhaps you’re burnt out at work and need a break from your job. However, that doesn’t mean that an all-expenses-paid vacation is necessary if you don’t have the funds available in your budget to cover it. Necessary expenses, which warrant dipping into your emergency fund, include a total loss of transportation, a higher-than-expected tax bill, or unexpected travel due to a family emergency. Upgrading your car to a newer model, purchasing a brand-new iPhone for work, or taking a last-minute vacation aren’t necessary.

Is it urgent?

We live in an on-the-go world that, unfortunately, assigns urgency to just about everything. Yet, only a few things are urgent enough to require taking money out of your emergency fund. Practicing patience isn’t only beneficial to your life, but also to your wallet. However, there are times when an expense is truly urgent. These instances include a sudden, out-of-state move or a major repair on a vehicle that you must use to travel or get to work. But, those “too good to be true” retail sales? Those aren’t urgent! Keep your money in your emergency fund for true emergencies, not retail therapy.

At South Pointe Apartments in Dallas, Texas, we believe it’s important to live life vigorously. In order to do so, you must educate yourself on the regular basis with lifestyle-enhancing tips, such as these. With this blog post, we seek to improve your way of life through education that promotes self-care.

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