This blog contains affiliate links. ♥
- PEACE: It gives you peace of mind that you have something to fall back on when the unexpected comes.
- CREATES A SAFETY NET: Finally you have money to fall back on when the unexpected comes!
Know that “the unexpected” is NOT Christmas or birthdays. You have a calendar. You expect them, don’t you? OK. So this pile of money is NOT for that. What is it for then? Sudden repairs, for instance. The hot water heater goes or you have a flat tire. Those are the types of unplanned for things that an emergency fund is meant to cover.
How To Start Saving
Make sure your savings is in an interest bearing account. Since you won’t be touching this money unless it’s a dire emergency, you should be able to earn at least a little interest. Talk to your banker about your best options and start saving today.