People have different levels of preparation. Whether it is preparing for a zombie takeover 🧟♀️ or the summer body, some like to be over prepared while some prefer to go with the flow. With something like an emergency fund prepare at least the minimum.
An emergency fund is a type of savings. It could be part of your standard savings or something completely separate. This is your safety net, your preparation bucket of money. This money is meant to cover unexpected events such as emergency hospital bills, car repairs, etc. Having an emergency fund removes the need to pay for things with credit cards or loans. But to be clear, an emergency fund is for emergencies only, not an urgent trip to the mall.
The minimum amount experts recommend to have in your emergency fund is three months’ worth of necessary expenses such as rent, car payment, and bills. This is so that if you were to unexpectedly lose your job, you are covered for at least three months as you search for another. Keep the money in a high yield savings account so that it is easy to access if necessary. With an emergency fund you are not just building savings, you are establishing peace of mind. And that, my friends, is priceless.
MMM tip: Do you have an emergency fund? If not, start small! Save $50 from your next paycheck.
Until next week!
Dariene
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Disclaimer: This newsletter is for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice. I am not a licensed financial advisor. Please consult a qualified professional before making any financial decisions.
