Emergency Savings Account
Saving for an emergency
An emergency savings account - what is it for....
Vehicles break down, you need new tires for the car, the refrigerator went out, these are things we don't normally budget for or even think about until it happens. These are the types things that can cause a great hardship. As a single parent just trying to figure out how to pay for something like that was very stressful. I never even thought of starting an emergency savings account and if I did my mindset would have been that saving $5 a paycheck wasn't going to help... boy was I wrong in my thinking. Saving as little as $5 a paycheck at 26 paychecks a year would have given me $130 in savings, that was and still is a lot, especially for an unexpected expense. I've read we should have 3 to 6 months worth of what we earn in a savings account for emergencies. But in reality most people don't and don't feel that they could ever save that much. To be honest I don't have that much in a savings either...yet. It is a work or should I say a Savings in progress... I feel even if you only have a portion of what you make in a month in an emergency savings account, that is better that not having any at all. By saving a little each month, eventually you will be able to build it up!Any savings amount will help in an emergency... for things like loss of a job, disability, auto repair, or even a household repair. Remember, an emergency savings is just that, for an emergency or an unexpected expense. It is not to be used for taking a vacation, buying Christmas or other gifts, new furniture or any other item just because we want or think we need it. For any of these other items you will need to start a savings fund just for them. I know this is easier said than done. But start small and you will surprise yourself and be glad you started this savings account.
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