Have you been building an emergency fund?
Ever notice how the rain bothers you most when you’re caught off guard? When you’re wearing a fabulous outfit and your hair looks great. We all know to expect rain, so why don’t we always find ourselves prepared? If you had rain boots, an umbrella and a good attitude, during a storm, the rain could even be fun. It may not be practical to walk around with an umbrella at all times, but it sure is practical to have on hand when it’s needed. You need an emergency stash to weather a financial storm at all times! Are you building an emergency fund?
Truth is many of us aren’t prepared for the unexpected! Unexpected may be an increase in expenses or a decrease in income. Regardless of how good you are at managing your money or budgeting, things that are out of your control happen. The best thing you can do is plan ahead in order to handle them with as much ease as possible.
The question is what should an emergency fund cover and over period of time should it last? Check out today’s LimorTV episode for a perspective on these answers.
If you don’t have enough money to cover the cost of the unexpected, you’ll likely find yourself handling extra stress on top of a difficult situation. Furthermore, if you have to borrow the funds to get you through a challenging time, you may end up paying interest, which adds to the financial and emotional burden.
We all know that life can be a character building rollercoaster ride, so be prepared and brace yourself for the financially unexpected.