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Wednesday, September 1, 2010

Emergency Funds vs. Car Repairs and Service

Emergency funds should not be used for car repairs and service.  A separate budget category should be set up specifically for car repairs and service.  I knew this and still used money from my emergency fund to pay for new front and rear brakes on my van.  I did not set aside enough money for long enough to cover this expense that I knew was forthcoming.

Since I know I will need to have my shocks replaced and new tires very soon I will need to set aside some money in my budget to cover these expenses.

Word of advice:  set enough money aside for car repairs and service on a monthly basis.  My plan is to set aside $100 a month in a separate category in my budget to cover these expenses versus taking money out of my emergency fund to pay for them.