Saving For Your Emergency Fund

I honestly feel that many people aren't saving for an Emergency Fund because many has never heard of it before. If you're one of the many, not to fear!

In my opinion, I feel that many people don't prepare for the unexpected. Let me give you an example.

Let's say you're working full time, paying rent, maybe have kids, or other mouths to feed. Don't forget all the bills you need to pay too. All of these aspects, important aspects in your life, depends on that one paycheck you get around every other week. THEN POW! Maybe you hurt yourself, OR maybe you lost your job, OR maybe you have a big leak in your place, OR maybe something else has been damaged. How are you going to support yourself then? 

What I'm trying to say is, we ALL need to have some savings on the side incase this happens (and I hope it doesn't). Believe me, this isn't being pessimistic, this is being smart.

It is VERY, VERY, VERY important to have an E M E R G E N C Y  F U N D saved up for yourself. You want to be prepared so that if anything happened, you will have less to worry about. Plus, if nothing ever does happen, at least you'll be feeling safe.

HOW MUCH DO YOU SAVE IN YOUR EMERGENCY FUND?

Ok, this part gets tricky. Before I tell you the common estimate of how much to have in your emergency fund, I want you to know that this shouldn't restrict you to only save in that range. If you feel it's not enough to cover yourself in any situation, then why not save up for more?

I'm sure there are a lot of different ranges provided out there, but I feel that a very stable amount to have in your emergency fund is 3 to 6 months of your paychecks worth after taxes (post-tax income). I've learned this from a very helpful article that I read on Mint, which you can reference to as well by clicking here.

PLEASE don't be intimidated by the amount that you need to be saving. You need to remember that this is the amount that you are SAVING, not SPENDING. There is no time span that you need to complete this by, and if you feel that you don't have as much as you would want in your emergency fund, just remember that anything is better than nothing. Even if it was just $100, wouldn't you feel better to know you have that $100 instead of nothing when that time comes?


Don't hold off this plan and tell yourself that you will do it next year, after Christmas, or when you get promoted. START NOW! Even if you're in a pinch with money at the time, even saving $10 here and there will really add up in the future.


I really do hope this not only teaches you something new, but that it also motivates you to start saving for an emergency fund.