Set aside some money now for an emergency fund to provide the needed support when you hit a rough patch in life.
Credit Cards are Not the answer when life throws you lemons.
Be ready for the yellow fruit by setting aside some savings so it doesn’t sour your future.
An emergency fund is something we all think about and wish we had but never seem to find the dollars for it.
Why have an emergency fund? Chances are good that life will throw something at you that you haven’t planned for. Having a little cash set aside will give you the emotional support needed to get through a financial emergency without having to rely on credit, mom or dad, or hocking some of your prized belongings.
Start squirreling away a little money at a time.
- Set aside a small amount (like $25) from each paycheck before spending any of your paycheck and put it in your emergency fund. Grow your contribution when you get a raise or when you get a bonus.
- Do you have something you could sell to start your fund? See “Easy ways to make some extra money” for more ideas.
- Start stuffing your change into a jar or box. Don’t limit it to just coins. After all emergencies are expensive!
- Get a credit or debit card that rounds up each charge you make to a whole dollar and put it into a separate savings account.
Start setting aside some money and before you know it you will have a nest egg of your very own.
The majority of people live paycheck to paycheck, making it critical to have an emergency fund. Having a nest egg gives you confidence to survive the unexpected. More importantly it keeps you from being vulnerable to more debt, losing your car, or being evicted from your apartment.
How much should you set aside? A good rule of thumb is to have 3X your monthly expenses. Even just having $1000.00 set aside can make a huge difference.
Take a Hike:
Start your emergency saving fund today. One of the best habits is to pull out a small amount (like $25) from each paycheck and pay your emergency fund. Do this with your next paycheck and continue with every paycheck.
It will be tempting to use your nest egg when you see a good sale but BE STRONG. You will thank yourself when a real emergency hits…. And it will hit.
Factor this new monthly savings into your Budgeting process.