Posted on December 07, 2015 by Claire Chouinard
Who needs an emergency fund?
Chances are you will never have to use it, right?
And the money could get put to better use, right?
True Story: About a month ago my sister was enjoying a movie night with her roommate when a drunk driver ramped over a car, hit a utility pole and came crashing into her house. Thankfully nobody was hurt, but this was something that was definitely not in her budget for the month. Insurance didn’t cover everything, so she had to come up with money to replace her personal items that were now covered in broken glass.
Rethinking that emergency fund yet?
You never know what life is going to hand you. A sick pet, job loss, and medical problems are just a few emergencies that can happen to you. It is always good to be prepared so you don’t put a strain on your financial success. The general rule is to have 3-6 months of living expenses put away into an emergency fund. Seems like a lot, but most of the time emergencies are not cheap. Just remember, don’t touch your emergency fund! Have other accounts set up in case you need some extra cash, but trust me you will be happy you aren’t digging into this one. Also, remember that Rome wasn’t built in a day. You don’t need to take every cent of your next paycheck to make an emergency fund. Just take it slow, putting a little bit away each month until you build up to your desired amount!
Welcome to the real world,