Modern Gal’s explanation of an emergency fund
Most people who follow personal finance blogs and writers know about the concept of an emergency fund. Whether you have put aside one week, three months or nine months of paychecks or household expenses, that’s the money your family has set aside to take care of emergency situations.
Modern Gal has a very good explanation of what you should – and shouldn’t expect your emergency fund to help out with. This means your monthly budget has to include more than just the bills that come in every month. You have to build in some wiggle room for the routine repairs and seasonal expenses, and then get an emergency fund going on top of that.
Yes. I know that is hard to do when you are already living paycheck to paycheck and / or the income has dropped. That’s why my blog includes money-saving tips for every line item of a household budget.
Financial savings from wherever you can find it can help you pay the bills on time, build up cash flow, get the emergency fund supplied, and then take on whatever other financial goals you have set.
Posted: May 26th, 2010 under Budgeting, Financial Literacy, In the Blogosphere.
Comments: 1
Comments
Comment from ElizabethG
Time: May 26, 2010, 9:23 pm
thanks for the link and for reiterating the key points of an Emergency Fund.
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