Once a bottle of water cost me $1197.
Yes, you read that correctly. A bottle of water cost me a fortune.
I attended a conference for money nerds, called FinCon. It’s where people who love to talk about money meet. All your favorite bloggers, podcasters, and financial experts gather each year to discuss ways to help YOU build wealth.
All-day, I ran from one session to the next, meeting awesome people from all over the world, and learning a ton.
Drink water, they said. Stay hydrated or die!
So I carried a bottle of water in my bag to keep hydrated. Little did I know my water bottle didn’t close on our last day. It slowly leaked into my book bag and all over my laptop.
As soon as I realized, I immediately went into clean-up mode. But I was too late. When I turned on my laptop, it made a sizzling sound and then went black. Off to tech heaven, she went.
Be Prepared When Life Happens
The other awesome thing about FinCon is I pitched my awesome freelance writing skills to several companies like Credit Karma, Motley Fool, and other financial sites.
How was I going to submit writing samples, do follow up emails, or seal the deal without a computer? I thought about this and then went into panic mode.
The next day I went to the Apple Store, and they confirmed the worst. My computer was fried inside.
I could pay Apple $750 to rebuild my laptop, or invest in a new one. I immediately shopped online and found stores nearby selling laptops for $860.
This decision was a no-brainer. I wasn’t going to pay to rebuild a tech dinosaur when I could buy a new one for $100 more.
My Family’s Emergency Fund Saved the Day. Hooray!
An emergency fund is money you save for a rainy day. I deposit a portion of each paycheck in a high yield savings account to make sure I’m making the most interest on the money I hope not to use too often.
Then when life happens–say I need to do immediate home maintenance or get an unexpected bill, my emergency fund is there to pay for the surprise expense.
I invested in a new laptop, and the care package since it covers damage from liquid spills, accidental drops, and cracked screens. I don’t invest in most product warranties, but I felt this one was worth it after I did my research on AppleCare.
Define What’s An Emergency For You
Now I know what you’re thinking. How in the world is a new laptop an emergency?
For some people, an unexpected car repair is an emergency because, without a working car, you can’t get to work — the same is true for me.
Related: My Tesla Story, How to Leverage Your Credit
I make extra money writing, and I don’t get paid for work I don’t do. With assignments due that week, I needed to replace my laptop asap.
Write a list of what you consider an emergency; that way, when you are tempted to spend your savings, you’ll have a list to remind you of what’s an emergency.
Don’t Have an Emergency Fund? Start Saving Now!
It’s never too late to start your emergency fund. You can start with as little as $25-$50 a paycheck. Make sure to save your money with a bank that will give you the most bang for your buck. Research bank promotions and bonuses before you sign up for a new account. Consider high yield checking accounts too.
You can also save your change with an app I use called Acorns (use my link and get $5). The Acorns app rounds up your purchases to the nearest dollar and invests your change into the stock market. You can earn interest and watch your money grow.
If you are starting from zero, save at least $500 in your emergency fund. Then save three to six months of your monthly expenses in your emergency savings account.
Take action to start your emergency fund and be prepared when life happens.
What’s one of your recent unexpected expenses? Share it with the Purpose of Money Community in the comments below.
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