We all need an emergency fund.
Now, we know what you just thought after reading that sentence- “BORING!”
We’ve all heard it before- “You should have 3-6 months of your basic living expenses saved… blah, blah blah”. But…
Our Brains Can Sometimes be Very Illogical
We think that just because everything is ok now, we don’t need to think or worry about the future. But it’s true, inevitably, something will happen.
Think of An Emergency Fund as a Spare Tire
We don’t care about spare tires until we need them. This same sort of logic applies to having an emergency fund, so it’s important to be prepared should the need arise.
Having an Emergency Fund Can Keep You out of Debt Traps
If you don’t have money to pay for an emergency, where do you get it? For most people the answer is- they borrow it. Whether that’s by using credit cards or somewhere else, it doesn’t really matter. The point is, you can avoid debt by having an emergency fund.
Make Your Saving Automatic
Know your budget, know what extra money you’ll have left at the end of the month if you follow it, and decide how much of that discretionary money you can allocate toward building your emergency fund. A WECU team member can help – it’s simple and easy.
All in All, What’s the Takeaway?
Emergency funds are important! And while it seems rigid and constricting to put rules around the use of your money. Building an emergency fund can give you peace of mind and avoid unnecessary stress!