Budgeting For Emergency Funds?
Emergency funds are considered to be a necessity as far as financial security is concerned, since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair.
When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.
However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.
Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.
What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.
Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.
In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.
When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.
Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.
Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.
The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.
Want to learn more? Check out "FINANCIAL FREEDOM: A Wealth Manual For The Middle Class" by Dr. Bryan Stoker free online at
http://www.autopilot101.com/free/book_FF/index.htm
And don't miss more than 770 ways to slash your bills with our online home study course, "MONEY SECRETS". Check it out at
http://www.autopilot101.com/free/book_MS/index.htm
More Articles
Do You Have A Plan For Sticking To Your Budget?
5 Super Wealth-Building Tips Pave The Way To Financial Freedom
TAKE CHARGE OF YOUR FINANCES: TIPS ON BUDGETING
Convert To Roth IRA Regardless Of Income 2010
Im Too Young, Im Too Old, Im Almost Old Enough,
Forecasting The Future Value Of Your IRA
Basic Financial Information Tips (Part I)
Correcting Four Common Money Mistakes
Related Products And FREE Videos
More Articles
The Simple $10 Debt Elimination Solution
... impossible to use them. Others lock up their credit cards or hide them in a safe place and vow to use them only in an emergency. The second step to paying down credit debt is to pay more than the minimum balance due. Most credit card companies require a minimum monthly payment of 2.5% of the outstanding balance. For example, if you have an outstanding balance of $1100.00 on a credit card charging an ...
The Quickest Way To Dramatically Increase Your Net Worth
... obligation. This article will focus on reducing your debt first because it is the fastest way to generate more money and, then, buy (own) more things. In our example, you have $204,000 of debt. If youre like most people, you pay less attention to the mortgage and car loan balances because you consider them to be rather normal (necessary) to your way of life. The credit card companies are probably ...
Improving Your Credit Score: Ways To Do It Quickly
... in matter of thirty days. You should realize the fact that credit bureaus are responsible for correcting any mistakes in your credit report and you should also know that it is in the law that they should. The next best thing you need to do is pay down the debt you have. For example, if you have a credit card debt, you don t have to pay all of it at once. The point to all this is to pay down your credit ...
... Checklist, you're the picture of financial health. One or two "yes" answers, while not necessarily a sign of impending doom, can be a warning sign of potential problems. Before things get any worse, take time now to draw up a realistic budget (including a savings plan) or to revise your spending plan. Cut back on your use of credit cards, and watch closely for other signs of financial trouble. Three ...
... levels of debt while men tend to look to the future and are more likely to plan ahead when it comes to their finances. Women worry more about how they are going to pay off all their current credit card bills, store cards and loans along with their mortgage, shopping and living expenses with three quarters of women doing so, meanwhile less than 50% of men worry about the same thing. Only 13% of men know ...