Stay on budget and work the Baby Steps long enough, and you’ll understand the power of building your emergency fund.
After all, stuff happens. And an emergency fund offers peace of mind when the circumstances of life get a bit—or a lot—chaotic.
Because of your hard work, you might be sitting on a hot $1,000—or upwards of $15,000—ready whenever you need it. Sounds good, right? And it is!
But here’s the dilemma: An emergency fund piling up in the bank and sitting month after month can start to feel less like security and more like a bonus. The lines between emergency needs and urgent wants can begin to blur a bit. We’ve all be there!
So today we’re offering a litmus test of sorts: Three questions you can ask to determine if your stated emergency actually warrants a visit to the emergency fund. We’ll also talk about a few quick fixes to clear up any emergency fund confusion in the future.