More proof living in London is ridiculous! Guy commutes to Uni in London from Poland... (& saves a ton of money)
- September 28, 2015
We all should have emergency funds aka instant access savings accounts with enough money to cover you for emergencies, they should only be used for things like:
In the past we’ve also recommended having this emergency fund ready to fund the cost of:
However, we’re now thinking this secondary list of items should really be called ‘rainy day’ fund, ‘life sucks’ fund, ‘life just happens’ fund or something similar. Psychologically, we think it’s better to never dip into your ’emergency fund’ but also to get you out of the mindset that these secondary emergencies are actually emergencies at all, in reality, you should have been planning for them at the beginning of the year and factored them into your yearly outgoings but as humans we generally can’t be bothered to plan that far in advance.
The split of emergency funds & ‘rainy day’ funds also ensures that you [ideally] keep exactly the right amount of months worth of outgoings ready in your emergency fund and really only ever use it for emergencies (hopefully never).