«Create an emergency fund,
car replacement fund, or vacation fund by signing up for automatic transfers to a savings account,» says Zina Kumok, founder of Debt Free After Three.
And if I have a true crisis (i.e. extended unemployment, severe family medical event), I can «rob» one of my other savings funds, such as
my car replacement fund, vacation fund, etc..
For the needs, you may consider adding a car maintenance fund,
car replacement fund, and / or debt freedom.
The importance of subdividing your cash assets into different categories, such as emergency funds,
car replacement funds, income replacement funds, etc, is that it gives you a better sense of what you can afford.
Not exact matches
You can also start saving for other expenses, such as a larger emergency
fund, a repair
fund for your home or a
replacement for your used
car.
That is more than enough for current expenses including a
fund for
replacement of their two
cars — they might get by with just one.
We've been temporarily sidetracked by an unfortunate engine
replacement in our
car which necessitated a complete emergency
fund overhaul, but as soon as we've restored that and eliminated the remainder of the $ 3600
car repair (down to $ 800), the last of that credit card debt (which started at over $ 6000 but is now $ 155.17 and counting) will be history.
Liberty Mutual also offers additional coverages that can be added to your policy including new
car replacement, better
car replacement, rental
car reimbursement, deductible
fund, and teacher's auto insurance.