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?
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.
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!