Why Emergency Funds Work: My Car Repair

I have been having some minor car trouble with it running a little hot. It wasn't as much of an issue over the winter with colder weather. Spring is now here and I am noticing the problem more and more. Now is the time to take care of it before more major issues come.

Today I did some shopping around. I need a new readiator (it leaks coolant). I found one online from an auto parts chain that had the part in stock locally and I got and extra 15% off with the online coupon. Now I just have to pick it up and take it over to my mechanic friend to have it installed.

I am not in any financial panic as I have money in my emergency fund earmarked for car repairs. The parts and accessories I need for the job were about $140 total. This comes out of my emergency fund and my normal monthly deposits to the emergency fund will replenish it over time. Luckily for me my friend accepts beer as payment for labor.

Without that money set aside I would be in a bit of a bind. Maybe I would have eaten a lot cheaper and stayed in more to make up for the cost. It could also have gone on a credit card where I would pay interested until it was paid off. Fortunately this is not the case as I planned ahead.

Thanks to the emergency fund a potential financial panic was curbed. Stories like this happen all the time. Be ready!