This month’s Mighty Money Minute is about the importance of having an emergency savings fund. That’s a separate stash of cash to cover financial surprises, like unexpected car repairs, housing changes, or even just a lost textbook. Having a “rainy day” account is a like a safety net to help you survive an emergency, whether it’s large or small.
If you find yourself with extra cash, resist the urge to splurge. Put some of that money into savings instead. Passing up your wants and prioritizing your needs can help you build up an emergency fund to handle life’s unpredictable events. Without any savings, you could end up having to borrow money at sky high interest rates and pay lots of costly fees, further adding to your financial headaches.
Saving a little now can save you from a lot of stress later.
- Open a separate no-fee bank account for your emergency fund so you won’t be tempted to spend that money impulsively.
- If you need help with getting started on an emergency savings fund or spending plan, make an appointment (https://www.tgslc.org/financialcoaching/index.cfm) to talk one-on-one with an online financial coach.