What happens if your air conditioning unit breaks or your car breaks down? Do you have an emergency savings fund put away for these sudden and unpredictable circumstances? Life happens and unforeseen expenses can often result in debt. It is important that you and your family save for emergencies so that your finances aren’t in a struggle should anything occur.
Here are 5 tips on how you can keep your family out of financial ruin:
1. Set a goal. Start with a savings goal that depends on your income and expenses. A general guide may be to save enough to cover 4 to 6 months of expenses.
2. Make sure your fund is easily accessible. Your emergency funds should be easily accessible in the case of an emergency, but not so accessible that you’re tempted to use the money for everyday expenses.
3. Treat your savings like a bill. Make it a part of your budget and even set up an automatic transfer.
4. Be firm about your emergencies. Use the money for unexpected expenses. This doesn’t mean a vacation or dinner out.
5. Start now! It doesn’t have to be a lot. Even transferring $10 each week will add up to $500 at the end of the year. It’s never too late to start. Start small and consider increasing your amount each month.
Having an emergency fund cushion can keep your family out of financial devastation and perhaps bankruptcy. Many people today live on a very tight budget and don’t have excess money in the case of an emergency. Let Gavin Langley help and advise you on financial security. Call today to start saving!