Guide on How to Start an Emergency Fund

Uncertainties in life are unavoidable, that is why an emergency fund is extremely important. You will not know what will happen every day. So having an emergency fund should be one of your priorities when building your finances because it will serve as your lifesaver if anything unforeseen happens.

What Is An Emergency Fund?

An emergency fund is a source of funds dedicated to unexpected uncertainties that will require cash. It prepares you to be ready for things such as accidents, illness, loss of income, and more.

Benefits of Having an Emergency Fund:

  • You will have available cash when there’s an emergency. there’s no need for you to be stress in finding where you will be able to get money because you have backup cash that is waiting in case you need it.
  • If you have savings, debts will be avoidable. Let’s all admit it, some of us experience being in a situation where you needed money but you don’t have any. The first thing that comes into our mind is to ask help from our relatives or friend. Yes, that is an option as well, but you need to make sure that you will be a responsible payor because if not it will affect your relationship because the person you’re in debt to will not trust you anymore.
  • Having savings will make you secured, and if you are secured your mind will be at peace. In short, if you have an emergency fund you will not be in distress if something unexpected happens.
  • Protects your financial plan. If you prepare yourself, you will never get the money that is reserved for something else. For instance, you save money for your child’s education, but an emergency happen. If you have an emergency fund you will not get the money that was supposed to be used for your child’s education, but if you don’t have an emergency fund using the money that you saved will be your first option.

How to Start an Emergency Fund?

Step 1. Check your finances. Evaluate how much money you can set aside to be able to save.

Step 2. Open an account. You can open a savings account but choose a bank that is easy to access with a pretty decent interest, but if you can afford you can choose a higher interest account to maximize your potential interest earnings do that.

Step 3. Make sure to regularly deposit until you reach your desired amount

Saving for an emergency fund doesn’t have to start with big amounts. If you can’t afford to save that big, just start with a little amount. As long as you save regularly, you will definitely reach your goal someday.

Helpful articles:
Save A Ton Of Money With These Tiny Things To Cut Out Of Your Life
Saving Tips for Low-Income Workers
Budgeting Made Easy by 5-15-20-60 Rule
Money Management Tips For Couples
Money Tips For Single Parents

15 Comments

  1. Hello There. I found your blog using msn. This
    is an extremely well written article. I’ll be sure to
    bookmark it and come back to read more of your useful
    information. Thanks for the post. I’ll certainly
    return.

  2. Howdy, i read your blog occasionally and i own a similar one
    and i was just wondering if you get a lot of spam comments?
    If so how do you protect against it, any plugin or anything you can suggest?
    I get so much lately it’s driving me crazy so any support is very
    much appreciated.

  3. Nice weblog right here! Also your web site rather a lot up fast!
    What host are you the usage of? Can I am getting your associate link in your host?

    I desire my website loaded up as fast as yours lol

  4. I’m truly enjoying the design and layout of your website.
    It’s a very easy on the eyes which makes it much more enjoyable for me to come here and
    visit more often. Did you hire out a developer to
    create your theme? Great work!

  5. This is very interesting, You’re a very skilled blogger.
    I’ve joined your rss feed and look forward to seeking more
    of your great post. Also, I’ve shared your website in my
    social networks!

  6. Pretty section of content. I just stumbled upon your blog and in accession capital to assert
    that I get actually enjoyed account your blog
    posts. Anyway I’ll be subscribing to your augment and even I achievement you access consistently quickly.

  7. I like what you guys are up too. This type of clever work
    and exposure! Keep up the very good works guys I’ve included you guys to my personal blogroll.

  8. With havin so much written content do you ever run into any problems of plagorism or copyright violation? My website has
    a lot of exclusive content I’ve either created myself or outsourced
    but it seems a lot of it is popping it up all over the web without my agreement.
    Do you know any techniques to help stop content from being stolen? I’d genuinely appreciate it.

  9. When someone writes an post he/she maintains the plan of a user in his/her brain that how a user can understand it.
    Therefore that’s why this paragraph is great. Thanks!

Leave a Reply

Your email address will not be published.