Building up your emergency savings is important, but I want to talk a little bit about why it matters. Too often, we take the “why” for granted. We assume that well, of course having some extra money on hand for emergencies is a good idea. » Read more
Category Archives: Emergency Funds
Most personal finance advisers suggest that we should have an emergency fund for those tough times. Dave Ramsey even includes this recommendation in his Baby Steps system for getting out of debt and becoming financially free.
One of the first things he tells you to do is to build a $1,000 emergency fund which you can keep in an interest-bearing account, perhaps in something like a SmartyPig savings account. You can use this baby emergency fund to hedge yourself from possible mishaps. Only after you complete this step does he suggest that you start to chip away at your long-standing debt. » Read more
We all know that it’s important to have an emergency fund. If you have one, you’re much better off than you would be without one because it gives you a bit of a buffer in life.
But there’s more to life than the two extremes of regular expenses and emergencies. So, do you have an inconvenience fund as well? » Read more