There is one financial goal that should be a high priority on everyone's list: building an emergency fund.This money will help you cover the cost of those unexpected rainy days,such as when you lose your job,the roof starts leaking,or you are seriously hurt in an accident.An emergency fund is a financial safety net.It gives you peace of mind,and it means that you won't have to stop saving for your other goals,or worse,reach for those credit cards and go into debt when a crisis come.
Most financial experts recommend that you set aside three to six months income.For most people,that is enough money to repair a problem or to cover their living expense if they are out of work for a while.This money should be kept seperate from other savings.Don't lump it in with college savings,retirement savings,or even regular checking accounts.If the funds are not kept seperate,you might be tempted,or simply forget,and use the money for a nonemergency.In addition,an emergency fund should be liquid because you may need to get your hands on cash quickly.But just because the fund is liquid,don't get into it unless it is an emergency.
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