Do you really NEED an emergency fund?
YES. Living in this world, you know that there are things that you just can’t control. An emergency fund gives you the tools the roll with the punches.
How much do you really need?
Trends say start with $1,000, but if a job loss/ crisis arises how soon will that money last for you?
Figure out your number. Consider:
- Job loss
- ER visit
- Insurance deductible…
- Dental situation
- Pet injury
- Replace a water heater (Major home repair)
- Family situation/ funeral/ travel
- Moving costs
- Car trouble. Like, major car trouble.
Where to put that money?
- Freezer? Undies drawer?
- Savings account? Most likely
- Money Market account? Not easily accessible.
How to create it?
- Set up that account. (trip to the bank/ online)
- Set up automatic savings Think (Out of sight. Out of mind. Ready for the clutch.)
- Example: ($50/check at 26 pay periods per year =$1,300)
- Bump that up ($100/check at 26 pay periods a year = $2,600 + $1,300 = $3,900 in two years without thinking about it.)
Questions? Let’s talk: firstname.lastname@example.org
Ready to get your finances in order?
The episode “Cash in a Clutch,” first appeared on Think Enriched.