February Emergency Savings Tip
Life happens day after day; the car breaks down, you get an unexpected Doctor’s bill, your hours get cut at work and you can’t make the rent or house payment. How do you handle these emergencies financially? You need an Emergency Fund of at least $1,000 to $1,500. These funds should be in a separate savings account. They should not be touched except for emergencies.
February Behind the Scenes:
If you had an emergency and needed $700.00 for a car repair today, do you have the funds without using credit cards? Many people don’t have funds to handle even a small emergency like a car repair and must turn to a credit card or payday loan. If you charge $700.00 on a credit card and make payments of $25.00 it will take you 39 months to pay it off (over 3 years) and you will pay a total of $950.00 due to interest. Having an emergency account, greatly decreases the stress in dealing with these types of emergencies.
In fact, having an emergency fund is initially more important than paying off debts. So, find a way to build this up fast. Make minimum payments on your debt short term to stockpile cash for your emergency fund. Why is this important?
If you don’t have an emergency fund,
you will continue to go into debt
for every emergency that occurs.
Keep inspired by using this Emergency Savings Printable. Print it out and post on your refrigerator, on your desk or in your planner. Color in each level until your account is fully funded. Then save this page for your finance binder (more about this next month!) and as a reminder of your journey and the importance of an emergency savings account.
Want more details: https://jumpropefinances.com/the-fine-print-februarys-tip/