Admittedly, for some folks, life is already an emergency. Others are getting by OK, but you never know what’s around the corner. That’s why building an emergency fund makes some sense. What’s an emergency fund? According to Investopedia.com, and emergency fund is:
An account that is used to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort.
How much do you need to set aside? Dave Ramsey says 3 to six months’ worth of expenses. So, how do you go about it? Here are some links!
- How and Why to Start an Emergency Fund – Get Rich Slowly
- Emergency Fund Definition | Investopedia
- 5 Ways To Grow An Emergency Fund | Bankrate.com
- Why You Need an Emergency Fund – Financial Planning – About.com
- Emergency Fund – Practical Money Skills
- How to Start & Build Up Your Emergency Fund in Savings
- A Step-By-Step Guide to Building a Big, Healthy Emergency Fund …
- Dave Ramsey: 3 to 6 months
What about you? Have you built your emergency fund? If so, did it give you a little sense of security? Let us know over at the MindField Online Facebook page!
Great idea!! But what about us older folks that never saved?? I’ll have to admit I took GREAT vacations with money I probably should have saved. But I wouldn’t give up those memories for no amount of money!!