Five days before Christmas, our clothes dryer died. I had a friend (who is an electrician) come look at it, and the motor is kaput. It would cost as much to fix the dryer as it would to replace it. But, this article is not about the dryer. This post is about peace. You see, I have an emergency fund: 3 to 6 months worth of expenses, stashed away in my ING Direct Savings Account. So, I don’t have to worry about where I’ll get the money to replace my dryer. Now, if this had happened two years ago, 5 days before Christmas, I would have freaked out. Now? I just go buy a new or used dryer, and I go on with my life. I don’t have to whip out my credit card, I don’t have to worry where the money will come from. I just handle the problem. When you have an emergency fund and actual cash savings, emergencies cease to be “emergencies” and they become “hassles” and “inconveniences”. (By the way, my sister just called and she has a dryer that is in storage, so I’ll be using it until we find the dryer we want. Yay!) Lesson: You need some cash savings so that you can deal with the “issues” of life! Think about it: If YOUR dryer stopped working, right now, would you have to borrow money to replace it? Hmmm… (Side note: I have 6 more referrals for ING Direct. You deposit 250, you get 25 dollars, I get 10. Click the contact button in the left-hand column and I’ll email you a referral code.)
(Not My Dryer!)