I Think We Need a Bigger Emergency Fund
Oh, lord. The hits keep coming.
Back in January, our heat pump (it’s like a combination air conditioner/heater) was making weird noises and our electric bills were really high. I had someone come out and they said the compressor was weak and recommended replacing the unit for $3,000 (it’s 10 years old - about the average life expectancy). Since I didn’t have $3,000, I had a second company come out, and they said there was nothing wrong with the compressor, I just needed a new starter kit for $100. Obviously, I went with the second company.
Well, within a month or so, the heat pump was making noises again and our electric bills weren’t going down. So I switched the thermostat over to the gas furnace, and meant to call them back about it.
Three and a half months later, I finally got around to it (and only because we’ll be needing to use the A/C soon).
Turns out…the compressor is weak and the unit needs to be replaced for $3,000. Luckily, I just so happen to have $3,400 saved up in anticipation of upcoming foundation work. The structural engineer is coming tomorrow, so hopefully he’ll have good news. Then, I’ll start getting quotes for the heat pump.
As for this “baby emergency fund” of $1,000: Given the current condition of our household systems and appliances, we might need to rethink the amount.
Boo!
Photo Credit: Rocks and air conditioner by Sheila Steele, used under Creative Commons licensing
One response so far
Oh crud! I don’t blame you for wanting to beef up the emergency fund a bit. We found $5k gives us more peace of mind and that helps us fight off this remaining debt.