Do you really NEED an emergency fund?

YES.

How much do I really need?

Trends say start with $1,000, but if a job loss/ crisis arises how soon will that money last for you?

Figure out your number.  Consider:

Job loss

ER visit

Insurance deductible...

Dental situation

Pet injury

Replace a water heater (Major home repair)

Family situation/ funeral/ travel

Moving costs

Car trouble.  More than oil change.   Major car trouble.

Where to put that money?

Freezer?  Undies drawer?

Savings account?  Most likely

Money Market account?  Provided that you will have some cash directly.

How to create it?

Set up that account.  (trip to the bank/ online)

Set up automatic savings  Think (Out of sight. Out of mind.  Ready for the clutch.) 

($50/check at 26 pay periods per year =$1,300)

Bump that up ($100/check at 26 pay periods a year = $2,600 + $1,300 = $3,900 in two years without thinking about it.) 

Questions?  Let's talk:  [email protected]

Ready to get your finances in order?

The episode "Cash in the Clutch," first appeared on Think Enriched.