You Need an Emergency Fund

This is especially during this time of the COVID-19 pandemic.  You never really know what happened.  Either they lost a job due to COVID-19, or something else dealing with COVID-19 like a parent or close family member getting sick.  Maybe they were not living within their means or got extended with bills, and just could not keep up. 

As I sit here this morning, a car is being reposed right outside my window.  Wow.  It’s a nice newer jeep compass, black, with nice tires.

Boy, that happen quick.   

I have had several cars reposed and I have never seen it happen, but it’s not a good feeling when it does. 

This is especially true during this time of the COVID-19 pandemic.  You never really know what happened.  Either they lost a job due to COVID-19, or something else dealing with COVID-19 like a parent or close family member getting sick.  Maybe they were not living within their means or got extended with bills, and just could not keep up. 

This is why working from a spending plan and planning to spend our money is so important.  A spending plan will help you keep spending in check and help us avoid negative experiences with money like repossessions.     

Whatever the case, when this happened to me I did not have an emergency fund that I could turn to and most people don’t. 

An emergency fund or contingency fund, what I like to call it, is just what the name implies, it’s a pool of money that is used for emergencies.  A fully–funded emergency fund could equal whatever you wanted it to be, but most would suggest an emergency fund of 3 to 6 months of living expenses. 

If you do not have an emergency fund or contingency fund, start today, start where you are, and start building yours. 

If you do not have any financial goals, make it your first financial goal…a fully-funded emergency fund, and then save toward the goal.  

Did you know if you saved $83 a month in 12 months, you would have $1,000 saved in your emergency fund.   

Share your thoughts, subscribe to the GoldenRules Blog, and learn how to create a winning spending plan for you and your family.  Share and like this post.