Have An Emergency Fund

Tue, Nov 16, 2010

Financial Advice

Hello NeedMoney readers,

I’d like to share a bit of advice which I wished I would have followed many years ago. Many of us — especially during these difficult economic times — are living paycheck to paycheck. I was once there myself. The problem with this is that if an unexpected emergency should arise — or if you should temporarily lose your income — then you are in a very difficult situation. In my case, it led to taking out loans at exorbitant interest rates — and subsequently getting behind on those loans thus damaging my credit for many years. I could have saved myself from this damage had I only managed to secure a small emergency fund enough to cover 90 days of personal living expenses.

Although it may seem difficult for many of you to find the extra money each month to start building this emergency fund, the effort is well worth it. Unemployment rates continue to rise, and no one is immune from a sudden lay off. Don’t end up like I did having limited options should your income be suspended — or additional unforeseen expenses arise. Most financial experts recommend having a minimum of 90 days worth of expenses set aside in this emergency fund, and some even advise having up to six months to be safe. At a bare minimum, take whatever steps necessary to build up a rainy day fund of at least 90 days. There is no harm in doing this — if it is not needed the only result is that you have extra savings towards your retirement.

James

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5 Responses to “Have An Emergency Fund”

  1. Dilep Says:

    I am a Very Poor, Pleas Healp Me.

    Reply

    • ayo akinyoobi Says:

      i need $500 to process my football document to U.S.A,i need it before on 31t of January 2011,i will return the fund when thy give me my first payment and i will give you wages

      Reply

  2. ayo akinyoobi Says:

    I NEED THE MONEY PLEASE ON 28TH OF JANUARY 2011

    Reply

  3. dana demby Says:

    hello my name is dana i have been out of work for 7mos dont have car but I use the bus or torlloy to get around . Iam 7mons behind on my rent I have four kids two boys and two girls ages 12 , 8 ,7 ,7mos right now Iam so fust I can think if I CANT GET THE MONEY TO PAY MY RENT BY THIS FRIDAY ME AND MY FAMLIY WILL BE HOMELESS IS THERE ANYONE WHO COULD HELP ME I WOLUD BE SO GREATFULL AND I WOULD PAY YOU BACK WITH INT FAST. PLEASE IF ANYONE CAN SEE THIS AND CAN TRUST ME TO DO THE THING AND HAS A HEART TO HELPSOMEONE WHO IS CRYING INSIDE IS A GOOD PERSON JUST HAVING HARD TIME PLEASE HELP ME MY E MAIL IS DANACMB636@YAHOO.COM.MX GOD BESS.AND THANK YOU DANA I NEED A LOAN FOR 1,85o dollars

    Reply

  4. SUMAN Says:

    hello my name is suman i need a small amount its only 35000 or iam goining fro my personal work will u please help me this is my acno1512500100968301 Karnataka Bank a.suman

    Reply

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