I opened a new savings account this week for my emergency fund! It is in an entirely different bank than my checking and other savings with no debit card and no easy transfer potential.
Basically, I am hiding my money from myself. I have a smaller emergency fund with my regular bank that I can tap ASAP, but I wanted something that took more effort to access. I have to physically go to the bank and request the funds. My work will direct deposit any amount I set to any number of accounts, so the money is automatically saved and like I never had it in the first place.
I am hoping to slowly build up that savings account to several months of expenses. I know for Dave Ramsey followers, it is something that should be done after the debt is gone, but I have a minimum of eight years before mine is paid. Somehow, the idea of not having an emergency fund for eight plus more years does not appeal to me.
I have lived without an emergency fund for most of my adult life, but I used credit cards instead. No more credit cards means no more typical “emergency fund”. Which is a good thing!