You’ve probably heard the term “Emergency Fund” tossed around so many times that you’re getting sick of it. You’re probably especially getting sick of it if you don’t have one, because you feel like it doesn’t apply to you. But that’s where you’re wrong — it really truly applies to you.
We talk about emergency funds all the time here on TFD. We’ve discussed how to save one, how long it might take to save one, how much to keep in one, and what to use it for. And we’ve discussed this all here with good reason: you really freaking need one. Having an emergency fund is one of the most important things you can do for yourself financially. Emergencies happen to everyone, every day. You could lose your job at any moment (scary to think about, but true regardless), you could get hurt or sick or have some sort of expensive freak accident, you could suddenly need to move or get a new car or fix a necessary appliance in your home. Emergencies are never fun situations — why would you want to make an already difficult time even harder by putting yourself in a situation where you need to be worrying about money while simultaneously focusing mental energy on the actual emergency at hand?
You need an emergency fund — even if you’re not making a ton of money, and even if you’re paying down debt. But why do you need one? And perhaps more importantly, how can you save one?
In last week’s video over on the TFD YouTube channel, Erin went over everything you need to know about saving your emergency fund. If you’re without one (or just want a little bit of a push to beef up your existing one) head over to the channel for some helpful ideas in this week’s installment of the 3-Minute Guide, brought to you by Skillshare.
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