When it comes to saving, the idea of saving for emergencies tends to not cross our minds- until it is too late. According to researchers at Ohio State University, seven out of every ten households do not even have enough money saved to cover three month’s worth of expenses. Don’t be another statistic- let the experts at Cline Financial Concepts help you be prepared for when the time comes, instead of letting emergencies hold you back.
Why exactly is having an emergency fund important? An emergency fund becomes a necessity in a wide array of situations. Imagine facing unexpected medical bills, major auto repairs or unemployment. Nowadays, many employers do not feel responsible for their employees’ wellbeing after a layoff. After being laid off, most people instead find themselves receiving less than enough to support themselves and their families, or entirely on their own.
Determining your monthly expenses is the first step in planning your emergency fund. Experts, like Scott Cline, recommend you have 3 to 6 months of your monthly fixed expenses saved in your fund. Scott recommends erring on the side of caution and keeping your funds closer to the 6 month amount. It cannot hurt to save a bit extra, if you have the resources to do so. When the time comes to make use of your funds, you will be glad you were prepared.
Tags: Champaign, Cline Financial Concepts, Emergency Fund, Emergency Planning, Saving, Scott Cline