Start an Emergency or Rainy Day Fund

Stuff happens.  Your car breaks down.  You have to take a trip for a funeral to another city.  Your child needs money for a school trip.  How can you cover unexpected expenses?

First, make a budget and do your best to expect the unexpected.  You  may not know exactly when your car will break down, but you know it will need repairs, so start a savings plan to save money now for those repairs.

Second, cushion yourself by having an emergency fund. Experts say you should have three to six months income in your emergency fund.  That may be impossible for some people, so start small.  Start by setting a goal of having $500 in readily accessible cash, so that if you need to pay for car repairs or some other unexpected expense, the money is there.

Setting aside $50 per week now to build your emergency fund is a lot easier than trying to come up with $500 all at once, so start your emergency fund today.

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