Dear Dave,
Recently, I got a speeding ticket. I’m also following your plan, so I was wondering if a speeding ticket is a good reason to dip into my emergency fund.
Ariel
Dear Ariel,
Well, it depends. Certainly you have to pay the ticket. In most states you could lose your driver’s license for not paying a speeding ticket. You’d have a real emergency then, wouldn’t you?
I would advise looking at the situation this way: what is the amount of the ticket in relation to your income and overall financial health? If the ticket is $100 and you make $200,000 a year, then stop worrying and pay the ticket. But if you got slapped with a $300 ticket and you only make $20,000 a year, then that could be an emergency.
If you can cash flow it out of your budget, then leave the emergency fund alone. If not, then dip in for just enough to pay the fine and replace the amount as quickly as possible. I mean, you’ve got to get it paid, right?
That’s an interesting question, Ariel. I’m glad you’re working to get control of your money. Just remember to slow down a little when you’re behind the wheel!
—Dave
*Dave Ramsey is America’s trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books. The Dave Ramsey Show is heard by more than 11 million listeners each week on more than 550 radio stations and digital outlets. Dave’s latest project, EveryDollar, provides a free online budget tool. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
