Every Dollar Matters

Emergency Savings Account

An important component of your budget is to save for emergencies. I am not talking about saving 3 months of income. What I am talking about is socking away $1000.00 to $1500.00 into a separate emergency savings account. This is not a huge goal for you to begin and accomplish. Even if you cannot fund the entire account today, open a savings account anyway with the first $100.00 or whatever you can afford.

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Then you are going to want to contribute to this account until you hit your target amount. My advice is to treat this just as you would any other bill. I would also advise you to setup to have this account automatically funded.

Why have an emergency savings account?

If you need a brake job for your car, or your washer crashes and burns having an emergency fund is going to save you a great deal of money than if you have to fund these types of expenses on a credit card.

Some Do's and Dont's