Growing up I always remembered my parents talking about an emergency fund and how important it was to have one. They taught me about it and told me to always have one for emergencies such as if something breaks down or if something unexpectedly comes up and you need the money.
As I got older and started a family, I realized how important it was to have an emergency fund. Since I have started one several years ago it has come in handy. For example, the tires on my car were worn out and I did not feel safe anymore. It was time to get new ones. I didn’t have enough money to pay up front for the tires, but my emergency fund had enough money in it. I was able to withdraw the amount I needed from my emergency fund and buy my tires without having to put on my credit card or going into debt.
How to Start an Emergency Fund
It is never too late to start an emergency fund. Below are some tips on How to Start and Emergency Fund that you can start at any time.
- Decide how much you want. – Ask yourself how much money would make you feel secure to have tucked away. Some people like $1,000 to start off with and other want a year’s worth salary. Decide on what you can afford to tuck away.
- Open an account. – Find a bank account that will allow you to open it for free with no set limit amount in the account or penalty for taking money out.
- Set up an automatic deposit. – Schedule a set amount to be directed deposited into your emergency fund weekly, bi-weekly, or monthly. Once you do that you will forget about it and never miss the money and watch your fund grow.
It’s easy to get caught up in the hustle and bustle of the holiday season and lose sight of the goals we’ve set to help us achieve financial peace of mind. While you may have gifts, greetings and get-togethers on the brain, it’s important not to lose sight of your financial goals. All of Capital One 360’s Black Friday Sale deals are designed to encourage consumers to keep their finances top of mind.
In addition to taking advantage of deals on banking, brokerage and mortgage products yourself, you can give your friends and family the gift of financial peace of mind by encouraging them to take advantage of the deals and refer them to the sale. If they sign up, you may be eligible for a $40 referral bonus.