No. of Recommendations: 0

"Those of us paying down our debt know that when the car breaks down, the refrigerator goes out, the a/c bites it, etc, and we have NO savings, up goes the debt you just worked hard to pay down. "

I agree completely. Having a realistically sized emergency savings account has meant the difference to me in situations when I would have otherwise put unforseen but necessary expenses on credit.

The only thing I would add, based on my own experiences and those of friends, is that fools who are are a little less disciplined should keep the emergency savings account at a separate bank. When I was in college, my efforts to create a savings account always failed when I would continually transfer funds from the savings account to cover checks. When I got out of school, I opened up a savings account at a different bank than the one I ordinarily do business with. Without the ability to quickly transfer funds between accounts at an ATM or via telephone, I was prevented from wasting away savings funds on impulse purchases.

Also, for those who are thinking of paying off and canceling all (or all but one) of the credit cards in their household, having an emergency savings account goes a long way toward instilling the peace of mind that is necessary.

Just my 2 cents!

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.