The official blog for the Friday Addition Foundations in Personal Finance class
Friday, September 13, 2013
September 13 - Online Discussion Question 4
Define an emergency that justifies tapping into your emergency fund and define an emergency that does not justify tapping into your emergency fund (this doesn't have to apply to teenagers).
An emergency that would justify tapping into an emergency fund would have to be a true emergency. Examples would include getting a new well if your old one suddenly kicked the bucket on you, replacing a window that was broken,or paying unexpected medical bills. "Emergencies" that are really only things you want to do but don't NEED to do are not justifiable. like remodeling your kitchen, or buying a new laptop and Wi-Fi so that I can do an online class.
emergency: medical bills, car crash, house or any other damage to yourself or something you own that is a necessity
"emergency": "oh no my old $20 tv just broke now i have to buy a brand new state of the art massive flat screen tv so i can be the envy of all my friends and neighbors."
Adam An emergency that justifies using the emergency fund would be a car crash or losing of your wallet with cash. An emergency that is not worth using the emergency fund would be a item on sale that you really don't need.
An emergency that would justify tapping into an emergency fund would have to be a true emergency. Examples would include getting a new well if your old one suddenly kicked the bucket on you, replacing a window that was broken,or paying unexpected medical bills.
ReplyDelete"Emergencies" that are really only things you want to do but don't NEED to do are not justifiable. like remodeling your kitchen, or buying a new laptop and Wi-Fi so that I can do an online class.
*A true emergency is something like unexpected medical bills or flood damage.
ReplyDelete*An "emergency" would be like buying a new TV or furniture.
Emergency- House catching on fire.
ReplyDeleteNon-Emergency- Upgrading to the latest iphone.
Emergency would be a medical bill or car repair.
ReplyDeleteNon Emergency would be buying a new phone when you dont need one.
emergency: medical bills, car crash, house or any other damage to yourself or something you own that is a necessity
ReplyDelete"emergency": "oh no my old $20 tv just broke now i have to buy a brand new state of the art massive flat screen tv so i can be the envy of all my friends and neighbors."
travis
An emergency would be something like a broken bone.
ReplyDeleteA non-emergency would be something like the latest technology.
Autumn
An emergency would be a tree tipping on the house.
ReplyDeleteA non-emergency would be the doorknob coming off.
Houses are just on my mind today :)
Me to XD lol
DeleteAdam
ReplyDeleteAn emergency that justifies using the emergency fund would be a car crash or losing of your wallet with cash. An emergency that is not worth using the emergency fund would be a item on sale that you really don't need.
An emergency would be running out of food or a hole in the roof
ReplyDeleteA non-emergency would be losing the Ace of Spades from a deck of cards
Emergency fund: You wrecked your dad's lawnmower...
ReplyDeleteNon-emergency fund: You lost your favorite pair of shoes...
A real emergency would be if you crashed your car
ReplyDeleteA not-really-such-an-emergency would be if your ipod broke
eyezik
Emergency fund: A family member had a sudden heart attack and there are now numerous medical bills to pay.
ReplyDeleteNon-emergency fund: A dent in your new car that "needs" to be fixed.
an emergency that would justify you using you emergency fund is a car crash or an injured family member.
ReplyDeletean emergency that doesn't justify you using the emergency fund is you wanting to by a car or a new TV because yours isn't big enough.
-jacob
Delete