The perfect example of why YOU need a "rainy day" fund

Without getting into any great detail here I'm going to briefly share why everyone should have an emergency fund as part of their personal financial plan.  I have held a cash reserve of 6 months of living expenses for the last 3 years now and have never needed it until now.  With the holidays upon all of us I have felt more prepared this year then  ever.  Can you imagine how something like an $1800 car repair bill could shatter the holiday budget?  Well that's what happened to me.  All of a sudden I feel unprepared for holiday bills, investing and other goals due to this unexpected expense....but wait....this is exactly the reason I've carried this cash in my account for so long.  It was for today.  I didn't know that the entire front end of the Jeep was going to burst into flames on the interstate, but it did happen, and that is the point.  Life happens.  Life is the air conditioner for your home going out at the first of summer.  It is the hot water heater deciding to break, the unexpected medical expense that insurance did not cover, the car repair bill that jumped out of nowhere, losing your job just before a planned vacation, etc. etc. etc.    The point is that while dropping such a significant amount of cash on anything unplanned  hurts, it IS the reason for making an emergency fund a priority.   These listed unexpected life events are going to happen.  It's not a matter of if they will happen, it's a matter of when they will happen.  So the question is:  will you prepare for what is going to happen at some point or will you not?   I personally chose 3 years ago to prepare for the inevitable and now see the true benefit of doing so.  I will not be foregoing Christmas this year.  I will not be foregoing social outings with family and friends and I will not spend 2012 paying off an $1800 car repair loan.  That, in and of itself is enough positive news to keep a smile on my face this holiday season, and all because of a decision that was made 3 years ago.  Wow, I guess our current choices do in fact, affect our future performance : ). 

HAPPY THANKSGIVING!

-Asher-