Planning for the Unexpected
Saving for a Rainy Day
A solid emergency fund is perhaps one of the most important tools in developing and sustaining financial security. It is recommended to save six months of living expenses because no matter how well things are going, or well you plan, bad things will happen from time to time.
Well, it can be a hard sell. Spare cash can be hard to come by, and, after all, taking a vacation is a lot more fun. It sounds simple, but survey data reveals it’s anything but that for many Americans. According to a 2011 survey by the National Foundation for Credit Counseling, 64% of Americans don’t have enough cash on hand to handle a $1,000 emergency. If you are one of those who don’t have an emergency savings, learn why you should.
Six Reasons Why You Should Have an Emergency Fund
You lost your job.
You can’t shake that cough.
The only job you can get is three states away.
Your car makes a funny grinding noise.
Someone close to you passes away.
Your roof starts leaking.
Make a plan for yourself, family and friends.
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Credit: MyCreditUnion.gov