Do you have money saved for an emergency? If you are like most people today, you probably have not put away funds for an emergency. Financial Planners recommend that you should have a minimum of three month’s salary saved to cover a possible emergency! Six month’s would be better.
Three or six month’s salary seems like a lot of money right now. But, if you have an emergency such as a sudden loss of income from a major car wreck, excessive hurricane damage or a sudden family illness, three months or more of saved income will feel like a blessing.
If you do not have an emergency fund, start one today. Be prepared. That way you can avoid borrowing from your retirement fund or having to get a last minute loan from your credit union or bank. The best way to start saving is to have payroll deduction straight into an emergency fund account every payroll. Start with what you can afford, maybe $10 each payday and let it build.
Talk to your credit union or bank member service person soon. They will gladly open a savings account for you and even name it Emergency Fund. You can watch it grow until you reach your goal. Remember, saving three month’s salary is good. Six months is better. Don’t wait, start now.
Michael Raley may be reached at firstname.lastname@example.org