Why You Need an Emergency Savings Fund
Life is unpredictable, but your finances don’t have to be.
An emergency savings fund may be the only thing keeping you afloat in the case of job loss, medical expenses, car problems, or other unexpected expenses. You could rely on credit cards, but this often results in a hefty amount of credit card debt. Start to save money now and you will save yourself many headaches later.
How to generate a savings fund
The best way to start saving is to start budgeting. Once you get your other essential expenses figured out, you can judge how much money you can afford to put away each pay period or each month. Include everything you can think of, not just the basics like housing and food. Your emergency fund should account for nonessential spending and entertainment, and your budget should reflect that.