Is Visa too Close of a Friend?

Me: Do you have an emergency fund?

Client: What do you mean?

Me: You know, a fund set aside strictly for emergency purposes.

Client: Oh, yeah!

Me: Great. How much do you have in there so far?

Client: (Turns to her husband) How much is the balance left on our visa?

Me: [Exasperated sigh]

You would think the above scenario is just a cutesy little blurb on the importance of having an emergency fun that is not made of plastic. But no, on more than one occasion I have had the same answer to my emergency fund question.

Seriously people, a visa or master card does not count as an emergency fund. Now, I know, some of you may not have enough set aside to last you the recommended 6-8 months (or at the very least 3 months), but don't let that be something you simply shrug your shoulders at and say, "oh well" to. Getting your emergency fund in place may be hard, but it is doable.

The saddest thing that can happen is if you never make the effort to have money set aside for emergencies and then you rack up your credit card for them.

Tires blow out? Washer machine breaks? Break your leg and need to pay to get a cast on? Etc. Etc. Also, if you have hard earned cash sitting in an emergency fund, you are more likely to use it only when there are true emergencies. Credit cards are easier to whip out and you may spend on some things that may feel important, but not necessarily emergencies (such as a new sweater to match your purse).

Although I'm trying to be light and have fun, this topic is serious. Pay off your cards and use cash for emergencies ASAP!

don't CHARGE IT!