Why Having Emergency Savings Should Be A Financial Priority

We break down why an emergency fund can be a key part of financial planning, how large it should be, and how to start building it up.

It Can Help Keep You From Going Into Debt 

Preventing debt is one of the most important reasons to have an emergency fund.

It Can Provide  Peace Of Mind

Being prepared with an emergency fund, on the other hand, can give you a sense of confidence that you can tackle any of life’s unexpected events without experiencing financial hardship.

Terrain Map

It Can Help You Ride Out A Period Of Unemployment

Starting an emergency fund also gives you the freedom to leave a job you dislike by choice, without having to secure a new job first.

It Can Help You Make Better Spending Decisions

White Bag

Keeping the money out of your immediate reach can make you less likely to spend it on a whim, no matter how much you’d like to.

How Much Emergency Savings Should I Have?

The size of your emergency fund will depend on your income and expenses, but a common rule of thumb is to have enough money to cover three to six months of living expenses.

For More Posts Like This Visit The Female Professional