Short-term savings

The priority of a short-term savings is that we used to meet contingencies.

These are some of the contingencies to which a person has to face: a gift for a wedding we did not wait, buy a major appliance because we crashed, medical expenses, pour into our home, unexpected rise in car insurance , etc ...

Although generally short-term savings used to save these little unexpected, it is true that in the short term, any person may lose their jobs, causing a lack of income and saving our general plan is impossible to continue .

Therefore, it is advisable to have some money saved for a short period equivalent to 2 or 3 rolls. Why?

Because in the event of occurrence of any of these contingencies, we can continue saving for the medium and long term and will not affect our standard of living.

Take one example : Couple wins $ 2,200 / month, $ 1000 mortgage, car loan $ 300, sundries and entertainment $ 700, saving $ 200 (for long-term products).

What would happen to this couple if they have to buy a refrigerator because it had been damaged? Then they need about $ 800 to spend on the purchase. Here are several options:

1. Do not save this month and spend the 200 $ for the purchase and the rest buy through credit card and pay it in installments, making us into debt and pay interest, so for another three months, can not save long term.
2. Spend much less this month, which is theoretically impossible.
3. $ 700 Take our short-term savings (6000 $ = 2000 $ income X 3 months), keep spending the same or even long-term savings.

What do you think is the best decision?

You see, it is very easy to deal with these "little unexpected." Imagine a family member becomes unemployed. $1,100 would join the family at least several months.

If you have no money saved in the short term, how you pay the mortgage and car loan?, Where did you take and money to your monthly expenses? How to continue with your plan long-term savings?

The short-term savings is our contingency INSURANCE (from smallest to largest).

What do you think short-term savings? Do you think good or bad? Do you know another way to address these contingencies?