Recently got in a car accident and insurance deemed my car a total loss. I had a $4k emergency fund and an additional $4k in other savings, which I used to buy a $8500 car.
I’m 19 with low expenses (<1000/month), I usually invest $1650-$2000 on a monthly basis outside of what gets taken straight out of pay (403b, pension).
I’m a little stuck on how I should prioritize refilling my emergency fund, and if I should pause investing to get it back to what it was before. Also I’m considering beefing up the emergency fund to $10k.
Just drained my emergency fund, how should I prioritize refunding it?
byu/ringle06 inpersonalfinance
Posted by ringle06
2 Comments
Follow this flowchart, it answers this exact question: https://i.imgur.com/lSoUQr2.png
Refilling emergency fund takes precedent over your investments.
Because god forbid what if you have another emergency later this year.