7 Rules for Riches – Emergency Savings Account
Do you like surprises? Or, maybe I should say, are you ready for them – those surprise expenses that catch you off-guard!
Unexpected costs are inevitable in life. A year ago, a reported 6 in 10 Americans didn’t have enough money to cover a $500 unplanned expense. This is crazy!
An emergency fund is for true emergencies so that debt can be avoided. It should earn interest and be accessed only for real needs. Vacations and birthdays don’t count!
It provides a buffer when layoffs, illness, divorce, or accidents prevent you from working temporarily. Auto, home repairs and medical bills can be covered stress-free.
Earnings can be disrupted a variety of ways – like natural disasters, caring for aging parents, injured or seriously ill family members, sudden moves or career changes. An emergency fund gives the flexibility to serve as needed. Imagine having a big red bucket to put out a fire but there is no water in it!
To begin, automate your deposits into an interest-bearing savings or money market account. Have your bank remove your ability to access it from your bank card and online banking to avoid the temptation to quickly spend it.
Set a savings goal for this month, next month, 6 months, and by year-end. You can do this. Simply cut unnecessary expenses and exercise self-control. To get ahead you’ve got to use your head!
A goal of $20 a week will give you more than $1000. $50 a week – $2600 and $100 every week -$5200.
Proverbs 6 says, “Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.”
If you prepare today, you’ll be ready for tomorrow!
And if you’re struggling with credit card debt, I want you to get in touch with Christian Credit Counselors. You can start with a free debt analysis today by visiting crown.org/ccc or call us at 800-722-1976