Emergency Funds - Worth Every Penny

Savvy Spending

Savvy Spender knows how to pinch a penny and about being on a budget. She has learned great ways to save money on everyday expenses.

Emergency Funds - Worth Every Penny

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Emergency Funds - Worth Every PennyIt happens, and it ruins your entire day. Just what you needed! On your way to work, you unexpectedly get a flat tire.

Of course, the thought that you are going to be late runs through your mind, but what you are REALLY thinking about is, 'How am I going to pay for this?' It happens to the best of us. It has happened to me dozens of times in the past, and I have literally thrown temper tantrums over it.

I had never been a savvy shopper, nor had I been good with money up until recently.

Countless times, I have bought things that I never really needed, like fast-food, apps on my phone, and other miscellaneous items. Once I became a wife and a mother, however, it wasn't just about me. It was about helping take care of my family. While it's nice to 'live a little,' now that I look back, it would have been more important to place any extra money I had aside in an emergency fund to avoid being in a rut. Big or small, an emergency fund is of extreme importance.

Emergency fund could be a term for many things, such as a savings account or a piggy bank, and it doesn't have to be complicated at all. In fact, it's quite simple. It only requires a little discipline and prioritizing.

Make yourself stop buying stuff you don't need and save.

I was once told a story about a woman who went to a book signing for a highly-known financial advisor and right as she arrived, her vehicle had broken down. She had travelled a few hundred miles to go to the book signing and was furious that the timing of the problem had to happen at that exact moment. As she had explained her reasons for being angry about her situation to the financial advisor, he asked her about her emergency fund. Her anger started to disperse, realizing that she had over $12,000 in her emergency fund to easily take care of the repair. In this story, you can clearly see how less stressed the woman was afterwards.

How, though, do you even remotely begin to start an emergency fund?

Well, it all begins with the proper budget and putting a name on each dollar bill of your income and stopping the wasteful spending! Once you know how much you have left over after all of your bills are paid, then you are able to start. If you have a savings account, move your extra money in there.

Let's say you have a $2,000 income and a $1,750 budget that goes toward paying for all of your bills, groceries and gas. You have $250 left over. If you were to put that $250 in your savings account every single month for one year, then you have a $3,000 emergency fund! Usually, financial advisors would encourage at least a $1,000 emergency fund in your savings account to begin with, but I'm just giving you an idea of how much money you would have at the end of the year.

Many banks offer programs that offer to 'round up your debit purchases to the nearest dollar' and put the change in your savings account. That's a great way to begin building up an emergency fund too. Be sure to check with your local bank to see if they offer such a program.

Having an emergency fund will help tremendously with sudden occurrences, without fretting about them being problematic. Whether you are single or married, if the unexpected happens, and you know it happens to all of us, then your mind will be at ease knowing that things will be taken care of and your family will be all right financially.

Kristin Willis, Guest Mommy Blogger for Leading provider of Debt Relief, CareOne Services, Inc.

 

Kristin Willis

Kristin Willis is the founder of the blog, Coupon Friendly and a stay at home wife and mom of 4 children from Springfield, Missouri. She's been writing for 2 years and has a passion for it as well as theater arts and music. Her favorite past time is playing games with her family.

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  • Thanks for the article. I think that your recommendations are indeed essential and helpful! Your explanations are understandable and clear!

  • I look on the shop notices and plan my paying for around the deals. I also use coupons every single time feasible. while I look at my Sunday paper and detect that Publix has a $5.00 or $10.00 coupon inside the Sunday paper I sidestep to a shop and buy more prominent papers. they have a unit bargain on the papers, as well. 2 papers for $a million.50 as against a solitary paper for $a million.00. i'm never again decline estimated, yet I do never again decide to spend more prominent in case I'm ready to spend substantially less.

  • Emergency funds are necessary in tough times. These funds may help you in many emergencies like health problems, financial problems and shopping problems. You can avail these emergency funds any time you want. There are so many loan funds but emergency funds are good to avail in a tough time.

  • An emergency fund is cash that you have put aside to explicitly cover any surprising costs that may come up. An emergency fund may cover surprising vehicle repairs, medical bills or other emergency situations

  • You want to set up an emergency fund as soon as possible, but like all savings, it's best to keep your costs affordable and save regularly.

  • We have to save our emergency funds for worst time. Nobody knows what happens next and we have to prepare ourselves with the solution of Emergency funds.

  • Emergency funds are very helpful in hard times. But these funds must be used for financial and health problems. These funds must be availed in tough times rather than burning opportunities for temporary comfort.

  • Saving 1 dollar everyday can make a big difference to change a life and that's is helpful if any emergency happens. No body knows what is going to happen next so saving will be better option to survive.

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