Do you really NEED an emergency fund?
YES.
How much do I really need?
Trends say start with $1,000, but if a job loss/ crisis arises how soon will that money last for you?
Figure out your number. Consider:
Job loss
ER visit
Insurance deductible...
Dental situation
Pet injury
Replace a water heater (Major home repair)
Family situation/ funeral/ travel
Moving costs
Car trouble. More than oil change. Major car trouble.
Where to put that money?
Freezer? Undies drawer?
Savings account? Most likely
Money Market account? Provided that you will have some cash directly.
How to create it?
Set up that account. (trip to the bank/ online)
Set up automatic savings Think (Out of sight. Out of mind. Ready for the clutch.)
($50/check at 26 pay periods per year =$1,300)
Bump that up ($100/check at 26 pay periods a year = $2,600 + $1,300 = $3,900 in two years without thinking about it.)
Questions? Let's talk: amy@thinkenriched.com
Ready to get your finances in order?
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The episode "Cash in the Clutch," first appeared on Think Enriched.
