How Emergency Funds Can Save The Day
Best way to prevent bad things with little effort
Cars break down, pipes burst, jobs dissapear. Emergency expenses crop up randomly. You can’t predict them, but you can plan for the, with an emergency fund. To cver virtually any financial jam, stash enough money to cover three to six months’ worth of living expenses in your emergency account.
It cantake a while to save that much, so start right away and you’ll be ready that inevitable rainy day.
The best emergency fund will have these key feature
- Separate from your everyday accounts
- No (or very low) transaction fees
- Easy access
- No penalties for withdrawals
- Interest earning on the balance
Without an emergency fund, you’ll be scrambling when an unexpected expensive crisis crops up. Check out what happens to Americans who don’t have emergeny savings to fall back on:
- 13% have to borrow from their retirement account
- 10% to take hardship withdrawals from their retirement savings
- 16% are late with their mortgage payments
- 19% overdraw their checking accounts
- 21% struggle with overdue medical bills
- 15% can’t afford to get a prescription filled
Remember to pay attention to your expenses. Nothing more suffer than loan shark visit. The thing is saving up thing holds your feet in the ground. Finance guru’s tips most of the time based on bet. So please be carefull
