Emergency Fund - Be Prepared For Life
Many of us are living are lives paycheck to paycheck, and maybe only putting a little bit away for retirement or savings.
Although it is a great start by putting money away for those things, an even fewer amount of people have money set aside as an emergency fund.
You may not think you need an emergency fund, or maybe were just never told that you should have one, but it is an extremely good idea to have one, because you just never know what could happen.
An emergency fund is money set aside to help you be prepared for when the unexpected should happen and you need access to money.
An emergency fund allows you to access this money rather easily if you should lose your job, need to make home or auto repairs, medical emergencies, or even the death of a loved one.
There are many emergency situations that can occur and it is best to be prepared for when they occur, without having to rely on credit cards or loans, which could just make the problem even worse.
So how much should you have in your emergency fund? The amount can differ from person to person depending on each individual family's needs, but according to the experts, you should have enough in your emergency fund to cover between 3 and 6 months worth of living expenses.
The amount for your family will depend on how big your family is, any special needs, house payment, and whatever other expenses you would need to be covered during the financially hard time.
3-6 months of living expenses may seem like a lot, but if you or your spouse should lose your job, you still have bills to pay during the time it would take to find another suitable job.
It is in your interest to plan for the worst case, so that you are prepared just in case it happens, and so that any smaller emergencies can be covered much easier.
Not everyone has enough money to just simply set aside 3-6 months worth of living expenses tomorrow, next week, or even next month, but it is a wise idea to start putting some money away now.
Don't look at this and stress over how to get a few months of expenses put away as an emergency fund as soon as possible.
Start small, putting a small amount away each week, wether it be $100 a week, or only $10 a week.
Soon, you will not notice the small amount missing and can add a little more each week.
This will not only create your emergency fund, but will also get you in the habit of doing, and be used to that certain amount of money no longer being there.
I used to think that an emergency fund was just a waste of time, as some of you probably do, and that no one really needed it as long as they were careful.
I soon learned how important an emergency fund was when my sister and her husband both got laid off from their job in the same month.
I couldn't believe something like that could happen to them.
When I asked what they were going to do, they told me they had an emergency fund that they had been putting money into for years.
Although it is a great start by putting money away for those things, an even fewer amount of people have money set aside as an emergency fund.
You may not think you need an emergency fund, or maybe were just never told that you should have one, but it is an extremely good idea to have one, because you just never know what could happen.
An emergency fund is money set aside to help you be prepared for when the unexpected should happen and you need access to money.
An emergency fund allows you to access this money rather easily if you should lose your job, need to make home or auto repairs, medical emergencies, or even the death of a loved one.
There are many emergency situations that can occur and it is best to be prepared for when they occur, without having to rely on credit cards or loans, which could just make the problem even worse.
So how much should you have in your emergency fund? The amount can differ from person to person depending on each individual family's needs, but according to the experts, you should have enough in your emergency fund to cover between 3 and 6 months worth of living expenses.
The amount for your family will depend on how big your family is, any special needs, house payment, and whatever other expenses you would need to be covered during the financially hard time.
3-6 months of living expenses may seem like a lot, but if you or your spouse should lose your job, you still have bills to pay during the time it would take to find another suitable job.
It is in your interest to plan for the worst case, so that you are prepared just in case it happens, and so that any smaller emergencies can be covered much easier.
Not everyone has enough money to just simply set aside 3-6 months worth of living expenses tomorrow, next week, or even next month, but it is a wise idea to start putting some money away now.
Don't look at this and stress over how to get a few months of expenses put away as an emergency fund as soon as possible.
Start small, putting a small amount away each week, wether it be $100 a week, or only $10 a week.
Soon, you will not notice the small amount missing and can add a little more each week.
This will not only create your emergency fund, but will also get you in the habit of doing, and be used to that certain amount of money no longer being there.
I used to think that an emergency fund was just a waste of time, as some of you probably do, and that no one really needed it as long as they were careful.
I soon learned how important an emergency fund was when my sister and her husband both got laid off from their job in the same month.
I couldn't believe something like that could happen to them.
When I asked what they were going to do, they told me they had an emergency fund that they had been putting money into for years.
