A $1,000 emergency fund is a savings amount set aside for unexpected expenses or unforeseen financial events, such as a job loss, medical emergency, or major car or home repair.
The idea is, having $1,000 cash or in a savings account set aside for most common “life happens” events that typically set us back because we would otherwise add unexpected expenses to a credit card. Which is exactly the cycle we want to help you break out of.
An emergency fund is a commonly recommended starting point because it is enough to cover most small emergencies.
Car repairs or unexpected medical expenses, without having to rely on credit cards or loans can be costly and add stress to an already difficult situation.
Having an emergency fund in place can provide a financial safety net and peace of mind, knowing that you are prepared for unexpected events.
Dave Ramsey, a leading personal finance expert says having $1,000 emergency fund aka a starter emergency fund, is commonly called Baby Step 1. It’s the first piece of your money journey, so it’s important to complete.
Did you know that less than 40% of Americans have $,1000 in savings, but almost every successful financial wellness plan today includes creating a $1,000 Emergency Fund.
An Emergency Fund is the key to keeping your finances on track because it gives you a cushion to fall back on rather than relying on credit cards.
Finding that much money overnight might be difficult. But, if you can find $100/month to put away from now until December, you’ll complete this resolution by the end of the year… and be in a better financial position than 60% of the country!
Start saving today!
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