Chapter 8
Establishing an Emergency Fund
IN THIS CHAPTER
Discussing the basics of an emergency fund
Choosing the right place for you to store your fund
Creating an emergency fund
After you master the art of budgeting (or are at least trying a method out for size), you need to start working on your financial goals. One of the very first financial goals you should have is to build an emergency fund if you don’t already have one. Used correctly, an emergency fund can protect your finances by helping you stay on budget and even stopping you from incurring additional debt.
If you’re reading this book, chances are you’ve encountered a financial emergency. It may not have seemed like an emergency at the time, but whether you’ve had to pay for a sudden car repair or had the roof on your house spring a leak during a storm, you’ve encountered a financial bill you weren’t prepared for or planning.
These unexpected expenses are why having an emergency fund is a critical part of your financial picture. Even if you don’t spend your emergency fund, you’ll still rest easier at night knowing it’s there.
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