We get so used to thinking of ouremergency fundas cash we shouldnt touch.
It can feel wrong to actually spend that money.
Here are four questions to ask before spending your emergency cash.
Is This Expense a Need?
This is a pretty obvious question but one thats vital to consider.
When you use your emergency fund to replace lost income, you cant spend like you used to.
Ask yourself: Is this expense necessary for my survival?
If not, its not worth draining your rainy day fund for.
Are There Resources to Help With This Expense?
In response to this financial crisis, various organizations and companies are providing assistance to those in need.
Banks arewaiving overdraft fees and adjusting payment plans on loans.
Many credit card and mortgage companies are letting customers defer payments.
Food pantries are trying to distribute more food.
School districts are providing free meals to children regardless of schools being closed.
Utility companies are vowing not to shut off service for those who cant pay.
Anyassistanceyoure able to get will help stretch the money in your emergency fund.
Need a Hand With Bills?
Listen, we know its tough out there.
But theres no shame in asking for help.
These companiesmake it easy to help yourself and your bank account.
Do I Have Cash Outside of My Emergency Fund?
If you have money saved up for a summer vacation or holiday gifts, use that cash.
Hold off on using your emergency fund until youve exhausted other viable options.
Justavoid pulling money from your retirement accounts.
Can I Get What I Need for Less Money?
Your emergency fund will only stretch so far.
Be smart about what you spend by looking for cheaper alternatives.
Buystore-brand products instead of name-brandto save money on groceries or shop at a store that offers lower prices.
Even if those arent your normal habits, think of them as a temporary belt-tightening.
Reduce your utility usage to lower your bills.
Compare medication costs with aprescription discount cardto find the best deal.
Need Some Quick Cash?
If youre looking to boost your income this month, weve got just the thing for you.
Nicole Dow is a senior writer at The Penny Hoarder.
