Guides / Emergency fund
Is this an emergency? A quick test
Three questions to ask before you dip in.
Having the money is half the job. The other half is using it only for real emergencies, and without guilt when you need to.
Ask yourself
- Is it unexpected?
- Is it necessary?
- Is it urgent?
If all three are yes
Use the fund. That's what it's for, and using it instead of a credit card is a win. Then make a plan to refill it.
If not
If it was predictable (an annual bill, holiday gifts, back-to-school), it's a sign you need a sinking fund for it next time.
General educational information, not financial advice. Stretching Funds Today isn't paid by any bank or company.