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Emergency Saving: Your Financial Shock Absorbers (Video)

Savings Your Financial Shock Absorbers

Saving money seems boring, so for most of us it’s not a high priority.  This is a bad idea!  It’s the financial equivalent of driving a car without shock absorbers.  If you’ve had the experience of riding in a car with failing shock absorbers, you know that whenever you hit a bump or a pothole it’s extremely jarring.

When you are on your financial journey with no savings, you will be painful aware of each and every problem that arises.  An emergency fund puts a cushion between you and life.  And we all know that life happens!  You have an unexpected hospital bill, an urgent home repair, or a broken down vehicle.  If you have no emergency savings to pay for the situation, you now have two problems: your original problem plus a money problem!

What if you don’t currently have an emergency fund?  How do you get started?  It’s very simple: start systematically putting aside at least a small amount every pay period into a savings account.  It’s easy to automate this either through your employer or with your bank.  Your long-term goal should be at least six months’ worth of your living expenses in your emergency savings.  This way, when you hit a financial bump in the road, it won’t be quite so painful.

 

 

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Christine Luken
 

Click Here to Leave a Comment Below 9 comments
Robin Masshole Mommy - June 2, 2016

We have enough money put away to live for about 6 months. I feel ok with that.

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Chrishelle - June 2, 2016

We started a savings account last year, $50 a month. It isn’t much, but it has helped us out a couple of times when unexpected events have popped up.

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Nicole - June 2, 2016

Having that “shock absorber” of an emergency fund is a very important thing. I really need to start saving for this. Thanks for the post!

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Lois Alter Mark - June 2, 2016

That’s such a good analogy. It’s so important to save your money for those financial bumps in the road!

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Rosey - June 3, 2016

Life changes that leave you busted flat in Baton Rouge (song 😉 ) remind you how impt a cushion is too. Smart post!

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Tonya C - June 3, 2016

Such great post. My hubby and I were just talking about this. We are now on a savings plan which we hope will ease some stress.

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Ashley @irishred02 - June 3, 2016

We do an emergency fund. In the past we did not and I could definitely see why we should have one!

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Mama to 5 blessings - June 6, 2016

They say to have a safety net of 3 to 4 months salary saved for rainy days. I completely agree, you just never know when you will need it!

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