Establish An Emergency Fund For A Better Tomorrow
Todays fast paced world can be very unpredictable and its better that you prepare for the unexpected
. Starting an emergency fund for the future is the best thing you can do for a better tomorrow. Just like Noah, you need to practice the discipline of saving now even if know one else is.
Preparing for the future financially is always good. The future has always been mysterious and you never know what will happen next. Establishing an emergency fund is to help you if you ever get caught in a financial crisis in the future. The emergency fund will cover the daily expenses even when your income stops. If you are looking for good money saving tips, start with establishing an emergency fund in a high interest earning savings account. This will be one of the best moves you have ever made.
There are so many unexpected events that life may bring, some may be good but you cannot always be guaranteed that it will stay like that forever. Unemployment, accidents, medical emergencies, economic stress, adversity, all these misfortunes may enter your life at any time. There are emergencies in ones life in one degree or another. However, people with an emergency fund will be better off than those who are not. According to some studies, people without an emergency fund are likely to accumulate debt. By establishing an emergency fund you will be preventing yourself and your family from going into debt.
How much you can save?
Financial experts have agreed that emergency funds are necessary; however, there is no consent on how much is enough. You should shoot for between 3 and 6 months worth of typical living expenses in your emergency fund. You may want to consider 6 to 12 months depending on your financial status, your average debt to income ratio, age, likelihood of future medical expenses or changes in employment, the size of your family, and your marital status.
If you are finally convinced that you need an emergency fund, where should you keep it? An emergency fund must be kept where you can access it anytime. One of the best options is the high interest online saving as it is easily accessible unlike money markets or certificate of deposits (CDs). You can manage the online account anywhere, anytime and set up automatic deposits from the checking account. This makes your job ten times easier.
Now, you can start your journey to financial freedom with the help of an emergency fund. Start saving now!
by: Jayashree
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