If you’re feeling less than prepared for a financial emergency, you’re not alone. (53%) of Americans have more emergency funds than credit card debt.
Just about any of life’s surprises can result in a financial shortfall we’re not prepared for.
Some of the most common ones are:
- Unemployment and Medical Expenses
- Auto Repair and Home Repair
- Family Emergency and Family Death
Any time is a good time to start your emergency fund, or to commit to putting more money aside than you usually do. Small amounts can add up over time, and it's easier to save small pieces at a time instead of large chunks of money at once.
Here’s some things to consider:
- Use a savings account to hold your emergency fund.
- Use a goal of three to six months income as your goal.
- Make sure whatever account type you use, it’s liquid.
- Remember to only use the account for emergencies.
Regardless of your financial situation or lifestyle goals, having an emergency fund is always a good idea. While you may be one of the lucky few that doesn’t run into a financial emergency, knowing you have the funds available can give you much welcomed peace-of-mind!