Category Archives: Emergency Fund

Where to Stash Your Emergency Cash

In the world of personal finance advice, there is a lot of harping on the importance of having an emergency fund, so hopefully you’ve been working on yours. Once you’ve got a decent amount of cash (wondering how much you should have? click here) spend some time considering where you’ll keep your funds. The obvious […]

When an Emergency Zaps Your Savings

Things happen and when they do, an emergency savings can be a lifesaver.  But, when you’ve worked hard to build an emergency fund and draining it can be a real downer. You could even lose your savings momentum. Don’t despair, you can get it back. First Step: Set a Realistic Emergency Savings Goal Experts are […]

Your Emergency Fund is Like Insurance

Most of think of insurance as a necessary evil. You must have auto insurance. We all know that one health problem without insurance can cause financial ruin. Life insurance provides some peace of mind in case something should happen to a family’s primary income earner. But, many Americans (nearly 50%) have a different attitude when it comes to squirreling away rainy day money, a.k.a. an emergency fund.

Typically, your monthly budget is distributed among expenses such as mortgage, car payment, food, utilities, etc. Insurance policies also take up a few line items. You should treat your emergency fund the same way. Don’t let it sit way back on the shelf where it is likely to grow mold or turn sour, because then, when you need it you’ll find that it’s useless.