Saving money seems boring, so for most of us it’s not a high priority. This is a bad idea! It’s the financial equivalent of driving a car without shock absorbers. If you’ve had the experience of riding in a car with failing shock absorbers, you know that whenever you hit a bump or a pothole it’s extremely jarring.
When you are on your financial journey with no savings, you will be painful aware of each and every problem that arises. An emergency fund puts a cushion between you and life. And we all know that life happens! You have an unexpected hospital bill, an urgent home repair, or a broken down vehicle. If you have no emergency savings to pay for the situation, you now have two problems: your original problem plus a money problem!
What if you don’t currently have an emergency fund? How do you get started? It’s very simple: start systematically putting aside at least a small amount every pay period into a savings account. It’s easy to automate this either through your employer or with your bank. Your long-term goal should be at least six months’ worth of your living expenses in your emergency savings. This way, when you hit a financial bump in the road, it won’t be quite so painful.
Comments 11
We have enough money put away to live for about 6 months. I feel ok with that.
We started a savings account last year, $50 a month. It isn’t much, but it has helped us out a couple of times when unexpected events have popped up.
Having that “shock absorber” of an emergency fund is a very important thing. I really need to start saving for this. Thanks for the post!
That’s such a good analogy. It’s so important to save your money for those financial bumps in the road!
Life changes that leave you busted flat in Baton Rouge (song 😉 ) remind you how impt a cushion is too. Smart post!
Such great post. My hubby and I were just talking about this. We are now on a savings plan which we hope will ease some stress.
We do an emergency fund. In the past we did not and I could definitely see why we should have one!
They say to have a safety net of 3 to 4 months salary saved for rainy days. I completely agree, you just never know when you will need it!
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