How & Why To Create An Emergency Fund

If you’ve been living paycheck to paycheck like most Americans, you may be thinking of the dangers that feel like they’re looming at the surface. These financial dangers can be anything from car trouble to health problems. If you need money, then they will more than likely go to these important emergencies rather than what your family needs, which can be a real problem if you don’t have backup. It’s important to plan for these things, and to save money just in case anything were to happen, and you and your family have some backup.

The first thing you should do when beginning to save for an emergency fund is to look at your budget. You’ll want to understand exactly where all your money is going, and what you can do to save more. Even if your family is living paycheck to paycheck, it’s definitely possible to ensure that you’ll be safe in an emergency by just saving around $20 every month. It’s a great idea to make sure that you look everywhere in your budget, so make sure that you’re tracking every little thing your family spends money on, so that you can get a better idea of what you’ll need to do with your money.

Next, you should start taking things out of your budget that your family can afford to go without. If you’re eating out once a week, make it a family dinner night where you all cook something you love instead. You can save hundreds of dollars a month this way, and it can go a long way to supporting your emergency fund. If you’re going to shop, make sure that it’s only for necessities. If it is, you should first check around in thrift stores and things before you make your purchase so that you know you’ll be getting the cheapest price possible.

If you’re going to be looking for clothing for you and your family, thrift stores are an excellent idea for some items, while you may want to splurge on certain things that will last longer, like shoes. If you spend more on shoes and coats, in the long run, you’ll end up spending less money on replacing them. Visit Kate Spade for huge savings on great items that will make your families paychecks go further, and where you’ll be able to save more in the future for your emergency fund.

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