“I am barely making it each check and you want me to have money set aside? HA!”
If this is you I want you to know I have been there! I used to think it was insane to expect me to have an emergency fund. I used to laugh at the idea of having money put away for emergencies. I can remember a time when we overdrawn $400 and didn’t know where the money was coming from. The last thing I thought of was having extra money set aside. That being said, I am a HUGE advocate for it now!! Now, let’s answer that question: Why should I have an emergency fund?
What is an emergency fund?
An Emergency fund is money you put away because you know life happens!
Why should you have we have an emergency fund?
In fact it happens so often you can’t think straight. In the last 4 months my husband has had MRSA, my van broke, my son had 2 surgeries, and we had a few other serious emergencies come up. These could have been catastrophic without an emergency fund in place.
The van breaking was rough but it wasn’t as bad as it could have been because we had the emergency fund to cover it.
MRSA was Hard!! I can’t imagine how much harder it would have been if I would have been worrying about the finances at the same time.
Think about your last financial emergency. Could it have been diffused by having an emergency fund?
How much do I put away?
This really depends on your financial situation. Start with a small goal. Work your way to $500. When you get there, work for $1,000.