Build an Emergency Fund

Financial emergencies happen in everybody’s life, whether you’re single or married. For this reason, everyone needs a little money put aside to cover unexpected expenses, such as unexpected medical expenses, home repairs, or a job loss. So establishing an emergency fund should be one of your first financial planning goals. Unfortunately having money set aside for emergencies is difficult to do, but it must become part of your total financial strategy. Always remember that your emergency fund won’t build up overnight, but your regular efforts add up over time.

How much do you need for emergency fund? Many financial experts recommend to keep three to six months’ worth of salary in an emergency fund, and some experts advise saving money enough money to cover anywhere from 6 to 13 months of expenses. There are a number of ways to save money for emergency needs. In general, emergency funds should be available just about instantly, or within days. So you can save your money for emergency expenses in a high-interest instant access savings account – these accounts do not require any notice to withdraw funds.

This entry was posted in Saving Tips. Bookmark the permalink.

Comments are closed.