Importance of Having an Emergency Fund

Being so far in debt and having a husband that, until recently, was perfectly content living paycheck to paycheck, I never saw the importance of having an emergency fund.  Dave Ramsey’s Financial Peace baby step #1 is having a $1000 emergency fund.  I’m not really into the whole Financial Peace thing as I refuse to spend money to get out of debt but one of the reasons I started my blog is by following a family, debtisdum, who vlogs about getting out of debt and they also teach FP classes.  I never thought I’d actually be able to ever save to have an emergency fund and always thought that every extra penny should be put towards paying off debt, so I blew it off as something that’s not very important.

My husband only recently mentioned wanting to have an emergency fund and, unfortunately, we haven’t had much time to grow it.  The money we have saved over the past two weeks was pretty much all going to be used to move into a more suitable apartment.  Now, I’m not so sure.

Since September 2012 I’ve been having some balance and dizziness issues as well as hearing the sound of my blood pumping in my ear.  I saw my Ear Nose & Throat specialist about it and she saw “something” behind my ear drum.  I had a CAT scan and never got a definitive answer about the results.  She also suggested a balance and hearing test.  I remember her asking me in the office what my insurance was and she seemed confident this balance test would be covered.  So it was scheduled and conducted (going in tomorrow for results) and now I’ve got a bill for over $1500 for it.  The facility that did the testing sent me a bill for $2045 which doesn’t reflect that my insurance covered about $350 of the procedures.  I also received about $290 in checks from my insurance company.  I’m not sure why they sent me money and I need to make a few calls today to figure this out.

Basically, if I did the math correctly, I owe about $1500 after the insurance payments.  If I can’t do some kind of repayment plan with the hospital billing office then moving will definitely have to wait until May.

Are unexpected (but not necessarily needed) medical expenses considered an emergency? What other expenses would make you tap into an emergency fund?

If we had one, this wouldn’t be a problem.  We might deplete the EF but we’d still be able to move.  I now clearly see the importance of having an emergency fund, even when you’re in debt!  And I definitely learned that Tricare doesn’t cover everything so I need to be more thorough about finding out what procedures are actually covered before having them done!

My husband joked that he got to blow $1000 on his underway last month and this is my turn at blowing it. Really?!   That’s not funny!


4 thoughts on “Importance of Having an Emergency Fund

  1. Oh that sucks! I hate when doctor offices say something will be covered and then it’s not. I seemed to have the most issues with my dentist. The bill that came in the mail never matched what they estimated my costs to be.

  2. Hey Kasey (sp?), I’ve come across your comments over on and thought I’d drop by to check out your blog. I liked what I’ve read! You are obviously a strong and resourceful person and I’m cheering for you! I also really relate to what you’re saying about growing an emergency fund – I thought everything should be thrown at debt until I realized I kept having these emergency things that would require me to borrow more money to solve the crisis. Enter emergency fund…Cheers!

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