An emergency fund is simply money you’ve set aside for life’s unexpected events. No one wants to be caught off-guard and ill-prepared so let’s beef up your emergency fund:
Is my emergency fund big enough?
- You’re single or a one-income family, you work on commission, you’re self-employed = You should have a six-month backup.
- You’re a double-income household, and you’ve had a steady income for several years = You can rely on a three-month stash.
Am I building my fund correctly?
- I have a budget and I live by it. This works when you’re acutely aware of your monthly income and expenses.
- I consistently put away a portion of my income. Even a small contribution is a valuable one.
- I review my financial situation and stash away more when possible. If your budget allows, contribute more to your cash savings.
Are there ways I can quickly increase my balance?
- Sell, sell, sell. We all acquire things we no longer need, and it’s common just to set them aside. Now it’s time to make them work for you.
- Work, work, work. You may be at or beyond retirement, but even a side gig or a few hours helping neighbors by walking dogs and babysitting can bring in extra cash fast.
- Change, change, change. Over time our lifestyle can get out of control, and where we were once good at pinching pennies, we tend to splurge. Look at your bank statements and make some lifestyle changes that can put some money in the bank.
We’d Love to Help You With Your Financial Plan
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.