If you car broke down, your house needed repairs, or life just presented unexpected expenses as it does, do you have the money saved to pay for it all?
In 2019 it was reported that more than 25% of Americans do not have an Emergency Fund, according to Market Watch.com.
Most people consider their credit cards as an option to use for unexpected repairs, but we must remember that credit cards have to be paid back and sometimes come with high interest rates.
Setting aside money and building your Emergency Fund could save you the stress, time, and energy WHEN unexpected expenses come up.
2 years ago at almost midnight my dog started randomly coughing up blood and as a dog mom I was in a panic. He is an older dog and only consumes dog food, so I was very concerned for him. I found an open 24-hour veterinarian, he was checked, and luckily he was okay. Guess what? That unexpected bill was almost 1k. That is where my Emergency Fund came in handy.
Now, I understand it may sound easier said than done, so here are some tips on how to start your Emergency Fund.
- Set up a separate savings account for your Emergency Fund. (Preferably at a different banking institution than your checking account)
- Be realistic about how much you can save.
- Start and build gradually.
- Set up automatic transfers for your savings.
- Set a goal for your savings.
- Remember this is for EMERGENCIES ONLY. Needing a new outfit or wanting to go out to eat is NOT an emergency expense.
- Sacrifice and repeat.
I know you can do this. You owe this to yourself to save NOW, so you don't stress later. Just Start.