Preparing for the unexpected with an emergency fund
In a perfect world, we would all have an emergency fund and we could all see what’s around the corner. Unfortunately, this is not always the case. However, there are ways to prepare for the unexpected.
If you’re not sure what an emergency fund is, it’s exactly what it looks like: it’s just the money you set aside to prepare you for any emergency that life can throw your way.
Among the payment of bills, living expenses, rent, car ticket, birthdays and family vacations – not to mention unnecessary expenses. It’s hard to imagine having a meager salary to keep it all.
Do I need an emergency fund?
While we may benefit from having an emergency fund, for those with medical conditions such as diabetes, asthma or allergies, it is especially important. When it comes to prescriptions and medications, treatments, medical bills or an emergency, having an emergency fund can help reduce stress and worry.
How much should I have in my emergency fund?
While it is impossible to say how much money you should have in an emergency fund, generally six months of salary can give you good financial security in case something happens.
The main thing is to start. Set a realistic target on how much you can actually put aside so you can immediately start saving.
Saving for six months of spending is incredibly ambitious for most of us, and if you do not feel tangible, you’re unlikely to stick to our goal.
If you can save only $ 200 per month, the amount is $ 2,400 over a year. Even $ 500 will make a big difference if something happens, do you or your loved ones have a medical plan? Qualquera helps in extreme cases help and much.
If, for example, your goal was to save $ 1,000 a year for your emergency fund, once you reach that goal, you will be pleasantly rewarded not only for the interest you have earned for your savings, but for the motivation to reach your goal. goal . Momentum usually builds momentum, so after reaching your first target, try to increase your goal to another $ 50 or $ 100 a month. This slight increase, of course, makes you even better prepared.
When did you save money by being prepared?
While it is impossible to avoid emergencies, at the Lender Group, we like to think that we can provide peace of mind through an easy and flexible loan that allows you to quickly access the money. We offer a friendly and direct micro-loan solution between $ 200 and $ 3,000, all done through our Lender website application