Highlighted

I need to create a viable fund for emergencie. Recently I had to borrow $200.00 from a famly member to get my vehicle bak after a repair, How much money should I put aside to cover financil emergencies?

3 REPLIES

Highlighted

Emergencies are different for everyone.  If you just needed new tires, it  could be a few hundred.  But if you blew an engine, it could be several thousand.  If you own a home, it could be anywhere from a water heater cost to a new roof. 

 

Most experts suggest a savings account should have a minimum of 3 months of living expenses in it.  Some say 6 or more.  However, for a young person starting out to have 3 full months of income saved is nearly impossible.  The way I started out, every paycheck, I put $10 in savings.  Each time I got a raise, I took the difference between the old paycheck and the new paycheck and put half of it in savings.  It took some time but eventually, I was up over a thousand in savings.

 

Today, I pay all my bills when I get paid and anything left in my account when I get my next paycheck, goes to savings.  Example, if my pay was $1,000 and I paid all my bills for that month and had $130 left in my account when I got my next $1,000 check, the $130 goes into savings.  The amount saved varies depending on what I had to spend but as long as I make more than I HAVE to have, my savings goes up.

Highlighted

Maxster,

 

I agree that everyone will have different needs when it comes to savings. I would recommend calling in to speak with one of our financial representatives at: 1-800-771-9960. They can review your account, go over spending and give you a better idea as to how much you should be saving.

 

Hope this is helpful - thank you for posting in the community. Best of luck!

Highlighted
Agree with Phantom Cobra's response. Every little bit helps. Some people will even have an extra 5-10 dollars withheld from their pay checks and then get it back with their tax refund. Yes I know that is paying the government to hold your money, but I did this when I was younger and it was very helpful (although my car always timed its need for repairs in April). I wouldn't do that before saving up the 3 months. You do need a buffer.