+My eyeglasses frame was damage, went to repair, and break again. RM 160.00
Consider it emergency case because it broke unexpectedly and I can’t live without my eyeglasses, I’ll go blind. So I have to use my emergency fund to pay a new frame because my current frame can’t be repaired.
+Labour fee: RM420. Prepaid call card in case of emergency: RM60.00. Massage for new mom: RM150.00 Other Medical Expenses: RM 110.
My wife had delivered our cutest little baby on February. I already separated for labouring budget in emergency fund and I don’t have to worry about insufficient money when it comes to medical expenses.
+Flight for Balik Kampung : RM86.00 + RM285.00
I planned to visit my parent-in-law and share our happiness of our newborn baby. Ok, I’m not supposed to use emergency fund for this kind of purpose, but I have no money left. I reluctantly used it and I know I broke the emergency fund rule.
+My little nephew throw a rock to my back glass pane of car for fun: RM350.00
At that moment, I felt furious and I really spanked my nephew for doing that thing. New back glass pane cost RM350.00. I really need to use the car and so I drew out my emergency fund.
I’m glad I have emergency fund that covered all these unpredicted expenses and I feel a little bit relief because my regular monthly cash flow ran smoothly without heavy distortion. As at 3rd march 2008, my emergency fund decrease 70% and it may be takes a while to recover. My goal for the next three months is to concentrate on raising emergency fund and I’ll set aside my money for RM300 a month.
What I’ve learned from this situation.
++Unexpected things happen and we need to get prepared when they come.
++Emergency fund is useful when in case of emergency.
++Emergency fund is a mandatory thing for everyone.
++It gives you financial safety net, so your cash flow didn’t blow up.
++Don’t use your emergency fund for fun, travelling, high tech gadget, and others.
I might be in the financial stress if I don’t make an emergency fund a few years back. I’m very thankful because I have no money problem when handling unexpected event.