Emergency Funds


If you’ve read anything about personal finance, you’ve been told to have an emergency fund. About $1000 to cover unexpected emergencies.
We have an emergency fund in our old wedding bank account. It’s a little over $1000 and since it’s in a separate account entirely, we forget it’s there 99% of the time. It’s still liquid, I have a debit card to it, so if in an emergency we need it, it’s easily accessible.
Get this $1000 saved up quickly. Do what you can to cut some costs and get it saved! Then, DON’T TOUCH IT! If you do have to use it, do what you can to replenish it as soon as possible.
Why is it so important? Because crappy stuff happens. If you’re like me, you don’t know anything about cars. The alternator goes out, or you haven’t paid attention and you need new tires. A pipe bursts and you have to call a plumber. An insurance deductible has to be paid for something. Things happen we don’t plan for.
The moment you have to use it, you’ll be so thankful you had that money saved. No scrambling to make ends meet for other bills. No having to pull from other budget categories.
You can’t go wrong with an emergency fund.

You may also like

No comments:

Powered by Blogger.