Debit Cards, Emergency Fund

Break The Credit Card Cycle

It has been several years since my wife and I regularly used credit cards for monthly purchases.  Instead, we use cash, debit cards, and online bill pay.  Here’s how we broke our credit card cycle – 1.  We put our credit cards in our wallets – and just left them there.  We didn’t cut them up.  We didn’t cancel them.  We didn’t put them in the freezer.  We simply made a decision not to use them on a regular basis.  Over the past six years, this has served us well. 2.  Before we started living on a budget and getting out of debt, our credit card served as our emergency fund.  If we were a few hundred dollars short at…

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Emergency Fund

Increasing Emergency Fund Balance

We have decided to increase the amount of money that we keep in our emergency fund. One of our goals is to keep an amount equal to six months’ worth of expenses in our emergency fund.  The primary purpose for the money in our emergency fund is to replace (or supplement reduced) income. Income designated for mid- and long-term savings goals (like automobile replacement, new furniture, etc.) is kept in the same savings account – but is not considered part of the emergency fund.  The savings goals are part of our monthly budget – payments that we “make” to ourselves, each month. As a side note:  We also have long-term disability insurance.  The emergency fund is designed to replace income,…

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Emergency Fund

Murphy – NCN, NCN – Murphy

Anything that can go wrong will go wrong. – Murphy’s Law It’s been a very interesting couple of weeks around No Credit Needed land.  As many will recall, we recently purchased our first home.  The first month in the new house was awesome.  The second month? – filled with challenges! Three weeks ago, just as we were getting good and settled in, every member of our family got the stomach flu.  I’ll spare you the details, but suffice to say, two adults, two kids, and a baby – all getting sick at the same time – does not make for an enjoyable experience.  I told my wife, I felt like we lost an entire week, poof, just gone. Just as…

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