Financial Wellness Series
We are excited to present a seven-part series on financial wellness that will cover several financial struggles Americans are facing, and ways to overcome them.
Part I: Do You Have an Emergency Fund?
If you had an unexpected emergency expense of $400, would you be able to pay for it? If your answer is no, you’re not alone. Forty-six percent of Americans said they would have difficulty with an emergency expense of $400. Furthermore, 140 million Americans have little or no savings at all.
With an emergency fund in your back pocket you will have the money to pay for the little emergencies that pop up in life. Such emergencies are:
- Job loss
- Medical or dental emergencies
- Unexpected home repairs
- Car troubles
- Unplanned travel expenses
Your emergency fund should have three to six months’ worth of expenses in it. That way you’ll be prepared for the curve balls life throws your way. Try cutting back on unneeded purchases, such as lattes on the way to work, and put that money toward your emergency fund.
Having that extra stash of cash also keeps your stress level down and keeps you from making poor financial decisions, such as taking out a loan or borrowing from your retirement plan.
Read Part II: Are You Reducing Your Debt?