This is your "Do Not Touch" fund. It’s the first kind of savings you want to establish. It's kind of like a fire extinguisher. Something unexpected pops up and costs you money. You use your emergency fund to take care of it. What kind of stuff are we talking about? Job loss. Medical emergency. Home repair. Car repair. Anything else is off limits. And, sorry, that cool, amazing sale is not really an emergency.
No emergency fund + credit card = debt. This is what an emergency fund is designed to prevent. You can use this calculator to see how much to save for an emergency fund.
You know that feeling you get when it's payday and you see all that money in your name? Imagine getting that feeling each day from looking at your savings account! We're talking about keeping money in the bank, so you can put your hands on it just when you need it.
We could all benefit from learning how to save money each month.
Look out for our #TipTuesday series tomorrow, where we’ll start to discuss 4 helpful kinds of savings.