Why You Need a Car Repair Fund
Monday morning on my way in to work, my low tire pressure light came on. My passenger rear tire had a pressure of 20, which I knew was really bad. I made an emergency stop at a gas station, paid the $3 fee to withdraw cash at their ATM, got change from the cashier, fought the air pressure machine that didn't want to take my quarters, and was finally able to fill up the tire.
Tuesday morning I saw that it was low again. Not dangerously low, but I knew that it would need to be fixed that night. I stopped by a tire repair shop on my way home, only to find out that it was irreparable and I needed a whole new tire. 1 of my tires was brand new from an accident last year, but the other 2 that didn't have a hole in them still needed to be replaced, if not now then soon. Since I was already in the shop, I decided to go ahead and replace them all. My total cost for 3 brand new tires? $292.79.
My car repair fund that I've been diligently contributing to every month had more than that in it, so this unexpected $300 expense was an inconvenience, not an emergency. Even if the repair fund only had $100 in it, it still would have been an unexpected $200 instead of the full $300 expense. Any amount that you have saved for these, let’s face it, expected, expenses, the less they will be able to derail you financially.
Do you have a car repair fund? If not, you should open one ASAP (at a bank with no to low minimums, no fees, and one that lets you rename your accounts) and start adding money to it every month for when your car needs a repair.
Want some help setting it all up? I cover all of the different savings accounts you need in my Money 101 session. Schedule a free 15 minute phone call to learn more today!
When’s the last time your car needed a repair? How much did it cost? Let me know in the comments!