I’m a big advocate of putting together an emergency fund. I’m not talking about that giant fund that contains 4-6 months worth of living expenses (or whatever the experts are recommending today). I’m talking about the money you set aside for unexpected expenses so that when your car breaks down, you can afford the repairs and aren’t panicking about how you’re going to find the money because you need your car to get to work. How much you save … [Read more...]
What is Emergency Savings For?
You hear about emergency savings all the time. You should put away money for emergencies. And since people so often say that you should try to save three to six months worth of expenses, it naturally follows that emergency savings must be to pay for what you need in case you lose your job, right? Definitely not! Yes, if you can manage to put away six months worth of expenses, you will be in a great place if you happen to lose your job. … [Read more...]
Using My Emergency Fund
A few weeks ago, I talked about the importance of an emergency fund. This past week, I got to use mine. On Monday, Memorial Day, I was at home, getting some projects done in the house, and I noticed that it was getting pretty warm in the house. I figured that it had something to do with the fact that I have the air conditioning set at a higher temperature during the day on weekdays since I'm not home. I don't want things too warm - after … [Read more...]
Are You Struggling to Save?
Saving money is tough, but it's important. And still, lots of us are struggling to save. We manage to make ends meet, we put away money for our retirements and we pay off our student loans. But are we doing one of the most important financial tasks: saving for an emergency? A recently released poll indicates that two-thirds of Americans would struggle to come up with $1000 for an emergency. Well that makes sense, you think. Plenty of … [Read more...]
Building an Emergency Fund
During the holidays, a lot of people in my office were out on leave. That left me as the ranking person on my team, which meant that when a coworker called in sick, I was the one who she contacted. Though never required, she told me why she was going to be out of the office. She had an exposed nerve in her tooth and it was causing a horrible headache. She planned to take some painkillers and try to sleep it off. I wished her well and hoped … [Read more...]