The Emergency Fund: Why You Need It, and How to Get It
Emergency—that word gets your attention, doesn’t it?
Emergencies are like rush-hour traffic: not fun to think about, but they’re still a part of life. The problem is not enough people prepare for them. A Bankrate survey conducted in June found only 22% of people have six months’ worth of expenses saved in an emergency fund, and 29% have no rainy-day fund at all. Think that’s eye-popping? Then consider that 53% of responders who earn less than $30,000 a year haven’t saved a dime for emergencies!
If you don’t have an emergency fund, you’re obviously not alone. But think about how awesome it will be when you can join those who do have emergency savings. Those people don’t hit the financial panic button when they face a busted water heater, car trouble or even a hospital visit. They can cover their bills because they’ve saved for a rainy day. Are you ready to join that group of people?