Short-Term Financial Planning
INTRUDOCTION
Short-Term Financial Planning
INTRUDOCTION
Why you need and Emergency Fund?
Why you need and Emergency Fund?
Picture this: you’re chugging right along making all the right moves to achieve your financial goals then… BAM! Something happens (A car accident? A flat tire ? A root canal ? List can go on) and you must come up with some cash to deal with it. You need emergency savings to handle unexpected situations and expenses. Otherwise, a little problem can turn into a big setback. Now, if that amount makes you scream and toss your computer across the room (don’t do that), you can always start with this approach: add up the amount of all your insurance deductibles (medical, car, renters/homeowners) and set that as your baseline for your emergency savings account.
Having the money to cover your deductibles means that, in the event of a serious emergency like a car accident or injury, you can cover the deductible without going into debt. You can start by building an emergency fund of $500. Then, you can add to it to give yourself six months of cushion if needed. Answer a few questions and we'll give you your optimal fund size, as well as more resources to help you save.