Hey guys, I’ve been thinking about how to best set up my emergency fund, and I could use some advice. Right now, I keep separate amounts for my car insurance deductible, pet insurance deductible, home insurance, and a month’s expenses. It feels organized, but sometimes I wonder if I should just combine everything into one big lump sum. What do you all think?
I keep my emergency fund in one big pot! It’s based on my monthly expenses, and I find it so much easier to access when I need it.
I have a mixed approach. I keep a mini emergency fund for immediate needs and then have sinking funds for car repairs and vet visits.
I totally get the struggle! I find having specific categories helps me not overspend on things I didn’t plan for.
I think it’s all about what makes you comfortable! I’ve got a little in cash for emergencies and the rest in a savings account.
I feel like a lump sum gives you flexibility. I’ve used mine for random things like vet bills, and it’s nice not stressing about categories.