One of the major components of being financially fit is to have an emergency fund. Having a lump sum of cash in the bank will give you a financial peace of mind and set you apart from the majority of people who are living paycheck to paycheck.
The vast majority of people would be up a creek without a paddle if they lost their jobs tomorrow. Many wouldn’t even be able to make it to the end of the month.
An emergency fund is the solution to this huge problem. Along with following a budget and paying off debt, an emergency fund is one of the keys to taking control of your finances.
Why You Need An Emergency Fund
Picture this: You walk into work tomorrow and your boss calls you into his office. “Jeremy – The company has had a rough year and we’re being forced to downsize. I’m sorry, but your position will be eliminated at the end of this week.”
If you’re like most people, that would be absolutely devastating. How will I pay my bills? Will I be able to put food on the table? Continue Reading »