An emergency fund is money set aside to cover any of life’s unexpected events. This is useful in case you lose your job or have a large medical bill to pay. Just 40% of Americans are able to cover an unexpected $1,000 expense with their savings. Last year, the most common unexpected expense was $5,000 or more. Read on to learn how to prepare yourself for a potential emergency.
Set your emergency savings goal. This is between 3-6 months of your realistic living expenses. You need to chart your monthly income and expenses to find out what that realistic number is.
Develop a plan. You can create a weekly or monthly goal for how much you want to put into the fund. Whatever is affordable for you.
Automate your savings. Have a portion of your check get automatically put into your emergency fund. This way you won’t be tempted to shrug it off.
Make cuts in your budget. Clip some coupons or cancel unnecessary services or memberships
Tax Refunds. Put a large amount of your tax returns into your emergency fund.
If you still find yourself needing cash quickly to cover an emergency, our Whatevah loan can help. Secure your financial future with us. Call 508.679.0197 to speak to a loan officer today.
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