Are you prepared for a financial emergency? Most Americans do not have an emergency savings fund just in case they run into financial issues. It could be car troubles, a family emergency, or the loss of a job. Do you have emergency savings or even know where to start? Listed below are a few tips to get you moving in the right direction of creating an emergency savings fund.
- First, you should chart your monthly income and expenses, and then set a monthly savings goal. This will move you in the direction of getting used to the idea of saving. But try to remember to make sure it is an amount that is comfortable you. Once these two musts are worked out you can start to develop a plan for where your emergency funds will come from.
- Set it aside. Keeping your emergency savings away from your normal, day-to-day checking and savings accounts is vitally important. Try to make it difficult enough to reach so it’s not tempting, but it should also not be impossible to get in case of a real emergency.
- Pool your resources. Your emergency savings fund should have all family members contributing whenever they can. Set a goal of $X dollars per paycheck for each person, and hold each other accountable for contributing.
- Save your tax refund! For those of us that expecting a refund back at the beginning of the year, this is great way to get started on your emergency fund. You kick start your year with savings!
Starting an emergency fund is critical to every household. Finding yourself in a position of financial difficulty is something that no one wants to go through. Your emergency fund doesn’t have to begin with thousands of dollars, just put whatever you can aside to get started. You will be amazed at how every little bit saved will help you out in times of trouble.