Another Month of Debt : Why You Need An Emergency Fund


This month I was set to be debt free! I had goals to close my current and savings account in order to open two new accounts with greater interest rates. Unfortunately, this weekend I ran in to some major car trouble; a clear sign that I need an emergency fund. This ever familiar issue that got me into debt in the first place has now come back to test me again!

The Issue

My car was long overdue some new brake pads and an exhaust repair. So long overdue in fact that upon taking it to the garage it was obvious that I would also need some new discs to go with the pads. After the inspection, I was drawn up a quote for £177 and with the need of a vehicle to commute to work, I accepted. This was unfortunately a big enough dent to set me back another month’s worth of debt repayments.

The Lesson

Here’s how it could have happened, this is where hindsight hurts. I could have checked out the problem upon the early signs, ordered the parts online for less than £30 and got the pads fitted myself before the damage got too bad. Doing my research early would have prepared me to carry out my own work on the vehicle, this would have prevented the damage from getting worse and costing me another month in debt. The lesson is; prioritise your time, no matter how busy you are it is always important to protect yourself from any threats to your budget or your safety before it’s too late.

Christmas Budget

On top of the garage fees, this month’s budget will also need to accommodate for Christmas presents; I am budgeting £100 as I have already bought half of my presents already. I’ll be looking to get ultra creative over the coming weeks in order to find or make presents for everyone!

Goal Update

With this unfortunate unfolding of events I will have to adjust the deadlines for my short term financial goals. These are now as follows:

Switch to a New Current Account

Previous deadline: 14th December 2013
New deadline: 2nd January 2014

Switch to a New Savings Account

Previous deadline: 1st January 2014
New deadline: 2nd January 2014

Save an Emergency Fund of 1950

Previous deadline: 28th April 2014
New deadline: 28th April 2014

Invest in a Stocks and Shares ISA

Previous deadline: 28th April 2014
New deadline: 28th May 2014

How is your budget looking for December? Have you found any ways to cut costs despite the festivity?

Update: July 2015

Hi all! I’m checking back in to this post as it’s been almost two years since I cleared this debt for good! It feels great to look back on my previous goals and how they helped me get out of the rut. If you’re interested in how I did it, here’s my guide on how to get out of debt.



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