I listened to some more Dave Ramsey and the minimalists podcast today. One thing I liked to hear about is the classic emergency fund. Get it nailed in a month. Pull that £1000 together like your life depended on it. It kind of does.
Debt can, I know, drive you to unthinkable lows. Fortunately, I saw the light at the right time and saved my wife and child from a journey that no one should be faced with. Now we’re on that positive frugal journey. A more meaningful life with less (and more experiences and money).
It got me thinking though. Once you’ve saved that £1000 emergency fund. Why not add a baby step 1.1 to the pie. Baby step 1.1 for me personally would be the average car fault repair cost. After all, if you can save £1000 in one month, you could definitely save £1250 in two. Then pile the other cash in to your next baby step.
So I had a look around and found some interesting data on car repairs, average costs: UK Average was £220.Ranging from £166 to £241. I completely get it. I totally understand where baby step 1 helps, but for me personally I’ve had bad luck one to many times. So I don’t see any reason why not to add that additional £250.
As it happens my emergency fund has been used several times and I do keep the £1000 one separate. It currently stands at £1128.67. I top it up monthly by £30.
This is my frugal month…