Put money aside for emergencies
Thursday, November 8, 2012
Start Your Emergency Fund
So, what happens when you find yourself in a money crisis? The car breaks down, or the dog has to go to the vet, or you forgot your boss’s birthday. First response – stress. How are you going to pay for it? I know the battery grim reaper has been knocking at my door with slow car starts, so it really did not have to be an emergency. When I’m in a spot where I don’t have the money, I’ll ignore the problem. Often, the problem only worsens. The battery dies on the way to work and I miss a few hours’ pay to get it fixed. Now my paycheck is smaller. Bad news seems to attract more bad luck.
What would happen if you had an emergency cash fund? Start setting one up now until you have $500 to $1,000 set aside in a
mattress savings account. Many credit unions or internet banks will open
an account with as little as one dollar or maybe $25 at others. Check your home
and car insurance deductibles to make sure your emergency fund could cover a
car accident or house fire. This ensures
that you have enough set aside for most of the money surprises that could throw
you off track. Again.
Now is the time to use all those money saving tricks you’ve seen to actually save money and put it in the bank right away. Coupons at the grocery store, eat breakfast at home, and walking to the library instead of driving to the book store. Every time you save, or find, extra money stash it in the emergency savings. You’ll feel stronger and more resilient as it grows.
Now you are in control. You have more flexibility. You can avoid credit card debt. There are more choices when you have money saved. Use the emergency funds ONLY for real emergencies, not great sales or vacations. As soon as you deplete the account for an emergency, start building it back up.
A fully funded emergency cash fund will change your outlook on money. Don’t live in fear of it, you need it to live every day. Start controlling your money and your circumstances will change for the positive. If you don’t have an emergency cash fund, find some money today and open that account. You are getting stronger.