Earlier this week I was going over budget stuff with my nieces and explaining the need for an emergency fund. I told them that when you have a car, you have to maintain an emergency fund, but cause it’s not if your car will break down, but when your car will break down.

The very next day we got the practical application of that particular life lesson. I was driving to work when the tachometer revved way too high, and the speed of the van dropped. I stopped at a light, and when I hit the gas, the van wouldn’t go. I shifted into park and back into drive, and the van shuddered into gear and lurched forward. I was able to pull onto the shoulder before the harried commuters behind me started laying on their horns for stopping traffic.

I watched my van bleed transmission fluid all over the road as the tow truck driver loaded it onto his truck. 3 days and $932.00 later I got my van back with a new radiator and transmission cooler. Nothing makes a bill like that easy to swallow – especially when it’s completely unexpected. But when you have an emergency fund, you have peace of mind knowing that you don’t have to go into debt to cover a repair bill.

Even though I would rather have skipped the entire ordeal, I’m glad that it provided a solid lesson that my nieces won’t soon forget. Everyone needs an emergency fund. Because you just never know what will happen.