Financial Freedom Account vs Emergency Fund

Recently I wrote about my new commitment to budgeting and keeping track of every penny that I spend. It's actually going well. It's amazing the difference in my attitude just because I'm writing things down. It's as if I've lowered my debt shackle stress level from 10 to about a 7. More about my spending habits later this week.

As I continue working toward developing sound financial habits, I 've been thinking about my financial freedom account. Is it a short term emergency fund or is it my 3-6 months of living expenses fund? I'm thinking that my financial freedom account is the latter.

I do need emergency fund for short-term or immediate emergencies. Otherwise known as things I used to charge on the credit card. Examples that come to mind are car repairs and tires and minor home repairs. In the past medical expenses that weren't covered by the deductible would have been in this category too, but now I have an HSA.

I am going to use my financial freedom account to build up 3-6 months living expenses. This account is already in place and, for now, I deposit $25 every two weeks into this account. Of course, once I am free of the shackles, that deposit will increase. I have yet to open my emergency fund. I am going to do this within the next two weeks. When I gave my notice at work last Monday, I found out that I get paid for any unused sick time at one-half my pay rate. This came as a pleasant surprise. I feel like I'm getting an instant emergency fund!