Why and How to Establish an Emergency Fund

As part of your financial planning for yourself and your family, it is advisable to set up an emergency fund. An emergency fund is cash that is readily available in case the unexpected occurs. Emergencies are typically identified as major health expenses, unemployment, home repairs as a result of an extreme weather event, auto repair or replacement, personal or family problems – anything that is unexpected and not in the family budget. Under most people’s guidelines, a trip to the Caribbean bec...

Setting up an Emergency Fund

Having emergency money that is easily accessible in an event such as a lay off or medical situation where you will not be able to work for awhile is important so that you and your family don’t suffer unduly while you are waiting to get back on your financial feet. Everyone should have an emergency fund that has from three to six months worth of your living expenses available should anything unforeseen happen to the main breadwinner. (more…)

Do You Need an Emergency Fund?

We typically hear that everyone should have an emergency fund equal to three to six months (or more) worth of basic living expenses. But, do you really need such an emergency fund? I'm not sure you do. Emergency funds give you something to fall back on if you become ill or disabled and can't work, if you or your spouse lose your job, incur large medical bills, or have an unexpected large bill such as a major car or home repair. (more…)