Well, I'm tracking ALL spending this month (I usually have a good idea on the inflow/outflow from the checking account) but am careless about cash (usually only about $150 coming in from coin-operated laundry and odd driving around I do for MIL, etc.
August has been scary:
(1) Had to replace a lawn mower (DH does three lawns - ours, our rental property, an elderly neighbor's) $215 end of season Sear's Craftsman
(2) Had to replace carpet cleaner - Bissell on sale on Kohls $144 (got $30 Kohls dollars back) with 4 kids/2 dogs and beige carpeting - this was a must
(3) $112 to plumber for a clogged bathtub drain at renal property (not bad, could have been worse)
(4) $72 to heating/air conditioning for house call today - only charged the diagnostic fee as the $350 part installed in Jan was faulty
My question is: do these things come from an Emergency Fund? I am assuming that they do and was wondering where do you all keep your EF? As a cushion in the checking account? A savings account? I'm considering where and how to deal with more unexpected things. I paid cash for all of these with the exception of the carpet cleaner,
August is a Big Spend Month
August 20th, 2007 at 02:40 pm
August 20th, 2007 at 03:15 pm 1187622905
August 20th, 2007 at 03:31 pm 1187623875
August 20th, 2007 at 03:33 pm 1187624030
Normally, for a rental house, you set aside so much in the rental account for maintenance on the house. That shouldn't have to come out of your money. It is an expense against your rental income.
As for the other items mentioned, the house call for the AC maintenance, I put under house maintenance which is money you allocate per month for maintenance on your house. Has nothing to do with your emergency fund per se. Although, if something does happen like it did to you, you will only have your emergency fund to fall back on.
When, it comes to lawnmowers, vacuum cleaners and such; it is normally something that I try to forsee in the future that will break down and I save separately for that as one would for tires for a car.
Don't know if any of this helps, but every little bit of advice helps.
August 20th, 2007 at 03:35 pm 1187624141
August 20th, 2007 at 04:19 pm 1187626773
Thanks for the advice all I appreciate it and should look ino a money market with check writing privilages -
I know I need an acount for the rental property, but it has been lived in by my grandparents up until just recently and their "rent" only covered expenses and didn't yield us "income" but we now have real renters who are paying real rent.
I do have $10K credit card debt at 0% interest in life of loan - I used that to invest and am making 5% on that (It was my first attempt at this and I don't really know the cost benefit of this system yet) I can readily pay it off and don't use it. Other than that we have another $10K (savings and vacation fund)
still trying to figure out this allocation stuff - i am a newbie ...
August 20th, 2007 at 07:51 pm 1187639496