It has been a while since my last post.
Just under two weeks ago I received the most devastating news. My father has passed away unexpectedly. Naturally, I flew back home the following day to be with my family and our family’s friends. I am not going to write anything else about my Dad’s passing, it hurts too much and there are no words to explain how lost I feel…
I will, however write about financial implications an emergency like this can cause. I have always been a believer that if you are aggressively paying off your debt, you should not have a huge emergency fund. Why would you have thousands of pounds set aside in your emergency fund if you are drowning in thousands of pounds of debt? However, I do believe that if you are paying off debt, you should still have a small emergency fund at around £1k (for a single person).
Well, my emergency fund was sitting at £500 which, unfortunately, was not enough to cover all expenses associated with my unexpected trip back home. I spent quite a bit of money on my last minute flight home as well as incurred other expenses while at home. I was lucky that my employer paid me in full for the days that I was away from work on compassionate grounds. I did not care about it a tiny bit at the time as naturally I had more important things to think about, but I was glad to learn that my employer is so generous and understanding.
My emergency fund has depleted and I have also used some of the cash I was supposed to put towards debt repayment in April to pay for some expenses that could not be covered by my emergency savings. Let’s look at my debt repayment numbers for April –
End of March Figure -£6,390
End of April Figure -£5,930
I put a total of £564.00 towards my debt, including interest. This converts to approximately 950 USD and 1040 CAD. This is not a huge payment for me, but you know what they say – every little helps. I am not entirely sure when my debt total was under £6k last time, but something tells me it was a good three-four years ago. It’s great to see my overall debt total reduce little by little every month.
I am still aiming to clear my debt by December 2014, but I will not be too hard on myself if I do not meet this deadline by a month or two. As long as I am moving in the right direction (and I totally am), then it’s all good. I will also start rebuilding my £1k emergency fund in May.
I hope you have been well. How did you do in April with your debt repayment/saving goals?