A few weeks ago, our country was severely crippled by a government shutdown. For the first time in 17 years, the government closed its doors and sent their workforce back home. Well, it was not quite that way in that it was only a partial shutdown, but it did feel that way for some.
On that first morning, I actually met with a furloughed government employee who went to the office that day and was told to “sign off the system and go home.” This family was not prepared for that.
The next week, one week into the shutdown, I met with another couple who were also affected. They were aggressively attacking the situation that lay before them and making sure they reacted to the loss of income for that period. The wife mentioned to me in that meeting, “now would be a great time for an emergency fund!” She, and really they, were realizing that it truly does rain sometimes.
The nice thing for them is that they had started an initial emergency fund, but her comment was directed to the fact that it was not as “fat” as they would have liked or are planning it to be. Now would be a good time to have a big fund to tap into.
Like so many, you learn that you need an emergency fund when the emergency happens. We often are then realizing that lack of planning and discipline has you flat-footed now.
Bankrate.com released a study this past summer that only 24% of Americans had and emergency fund of six months to help them financially survive in a time of an emergency.
This same couple survived! Not only did they survive, but they did not touch the emergency fund! Because of their behavior, they adjusted and survived a three week shutdown. Along with sharing their story with me, they also shared what others were doing who affected by the shutdown. Many were unable to pay mortgage payments, credit payments, and make essential purchases they had to make. And it was a three week shutdown that they were going to reimbursed for!
What about you? Do you have your emergency fund?
Have you had to use your emergency fund?
How did having an emergency fund affect your behavior in the emergency?