Have you ever had one of those times where suddenly the water heater stops heating or your car would not start at all or a family member ends up in an emergency care unit? Bad things happen to every one of us, and they always come in waves instead of following any discipline or giving us a breathing space. So it is important to have a financial life saver, in the form of an emergency cash fund, always ready.
Although people know that an emergency fund is a necessity, they’re not sure how much to save or where to save that money. Some people wonder how and where to find that extra cash to sock away. Unfortunately, there is no “one-size-fits-all” amount to keep as emergency fund. The amount for your emergency fund will depend on your financial situation and lifestyle. Build your emergency fund by saving at regular intervals, little at a time. Keep aside your emergency money in such a way that it’s harder to dip into but at the same time should be easily accessible; consider a secondary savings account.
An emergency fund will help alleviate the stress and worry associated with a sudden financial crisis. Take steps today to create a cushion for the future.