I remember as if it was yesterday, the day we finally conpleted our starter emergency fund. It was a day full of joy and celebration well you know the saying; money isn’t everything. But not having it when you most need it can be really stressful.
Yes, now I can say that my emergency fund is a blessing, but it wasn’t until a few years ago when one day we said enough is enough, we both my amazing husband and I work too hard to have nothing to show for it. And we were no strangers to the stress and discouragement that comes with not having enough money to put gas in the car or even replace a tire, maybe you never been there. When there’s too much month at the end of the money? Well that’s exactly where we come from and it is our hope that one of these days you can also say that your emergency fund is a blessing, make that your statement
We’ve all had those big expenses we didn’t see coming. That was our case That’s life. But that future (inevitable) emergency doesn’t have to stress you out.
Well one day we had this doctor’s appointment and I had to go through surgery, we went to the hospital to pre-reg. Fortunally we had get rid of Murphy and he no longer lived nor travel with us no more.
We, useed our emergency fund!
Your emergency fund is money provides a cushion between you and all the stuff that hits the fan. We had it! We were able to pre-reg and walked out of the place with a feeling everyone should experience.
One day we decided to kick Murphy out, he knock on our door from time to time and we gladly wave our emergency fund in his face, so he goes to check on our neighbors.
Well here are four common questions about emergency funds and how to set yours up:
- How much should I save? We recommend a starter emergency fund of $1,000. That’s an amount you can save quickly and still cover most issues. Eventually, you’ll want to build it up to three to six months’ worth of expenses. But that’s later. For now, focus on getting it started—and fast. Do this before you pay down debt or save for anything else.
- How do I find the money for it? You never know Budgets are desinged to help you get traction and ultimately win with your moneyuntil you make one. You’ll probably find cash you didn’t know you had! Plus, you can cut back in a few areas (like restaurants and entertainment) and find even more. You can also boost your savings by selling stuff online or picking up a bit of side work.
- Where should I keep it? Put a category marked “emergency fund” in your budget with a certain amount you want to save each month. This account will gradually build up and be ready to cover your immediate needs—like your heater making that-can’t-be-good noises when it’s freezing outside! Keep this cash in your regular bank account, or transfer it over in a new account when it hits $1,000. It’s up to you!
- What happens when I’m done saving?Once you have enough saved for emergencies, focus on your other debt or savings goals. But when you use your emergency fund, be sure to refill it as soon as possible. That way, it’ll be waiting for you when you need it next (and you will!) Refer to The secret to saving money you can also contact us for more tips on saving, paying off debt and staying out of debt.