We’re going to focus more on emergency savings funds today, in honor of America Saves Week.
This goal is crucial, but it’s also hard to predict what one will need. Experts advise saving from 3 to 9 months’ income in an emergency fund. Why? Because one common financial emergency is job loss, and it takes up to 9 months for job seekers to find new employment.
Not every emergency is that large, of course. Sometimes you just need $500 or $1000 because of emergency car repairs or a broken hot water heater. Unfortunately, a majority of Americans say they don’t have emergency funds on hand to cover a $500 car repair.
We also talked more about emergency savings funds during a previous America Saves Week. Read that article here.
If you can’t manage to build up any emergency savings, the first step is to resolve debts. Get started online or call us today to get started. And check out all of the free financial education we offer in our FIT Academy.
And be sure to pledge to save for America Saves Week! If you’re interested, there’s a 15-Week savings challenge this year too. Learn more here.