Why You Should Start an Emergency Fund Now
An Emergency fund is a bank account, separate from a standard savings account, that holds money in preparation for unexpected expenses. Many experts say an emergency fund is necessary, but most people never create one! According to CNBC, “56% of Americans are unable to cover an unexpected $1,000 bill with savings.”
Though we can plan our financial paths and keep track of all money spent, life will inevitably throw us financial curveballs.
As a college student living at home, I am blessed with a family who supports and aids me in all financial decision-making! I have big plans for my future and am eager to learn as much as I can about becoming financially responsible while I still have a supportive backbone to fall back on.
Once I begin my career and am out on my own, I find it necessary to be prepared for medical emergencies, car troubles, and even career setbacks. For this reason, I am committing early to putting money back to avoid finding myself in a dilemma! Every week, I dedicate a large percentage of my money to savings and an additional percentage to my emergency fund. Experts recommend saving at least a few months’ worth of living expenses just to be prepared! I believe this goal is very reasonable for a person my age to achieve with high levels of dedication! I do my best to save as much as possible now to avoid financial worries in the future.
Emergency savings accounts can hold any amount of money and do not have to be incredibly high! No matter your financial situation, planning for the future can be helpful. Everyone has different expenses and incomes; therefore, personalizing your savings plan to YOUR lifestyle is essential!
Contact Kelly Community at a local branch or over the phone to learn more about starting your own emergency fund account! It is never too soon nor too late to start looking out for your future self! Invest your money into your future now, and reap the benefits later!
|Brylee Bergbower is a student at the University of Texas at Tyler studying Kinesiology who is taking on the world, learning about financial matters, and writing about it for Kelly Community. In her spare time Brylee juggles two part-time jobs, spends time with family and friends, stays fit, and studies!