You’ve spent valuable time building up your emergency fund. But when is it the right time to use that money? These questions can help you decide.
A new water heater. A medical bill. A reduction in hours at your job. We’ve all experienced an unexpected expense or event that upends the best-laid plans (and budgets).
If you’re facing a shortfall, you may be eyeing your emergency fund. Our decision tree can help you decide with confidence if that’s the way to go.
Bottom line: Use your emergency fund only for those expenses that are truly unexpected, unavoidable, or urgent, so when a financial emergency does arise, you’re prepared. If you do use some of your emergency fund, it’s OK, just make a plan to rebuild it.