Life has a way of throwing you for a loop. When you least expect it, something goes wrong that requires cash you don’t have of your own to resolve. The furnace finally gives out, your car battery dies, you get sick or injured and have to take off from work for a while, the energy bill comes with a shutoff notice, or the kids need money for a class trip or school-related expense. When this happens and you don’t have the funds on your own, you have no choice but to ruin your budget or put yourself in serious debt.
You Need an Emergency Fund
An emergency fund is a savings account in which you deposit funds in to use for rainy days or unforeseen circumstances like those discussed above. It’s a financial cushion that, if managed well, can get you out of a lot of jams and eliminate the need to go into debt. [Read more…]
