Do you have an emergency fund set aside for a rainy day?
If you don’t, you need to start building one.
You might think your job is safe so you don’t need one but you never know when the unexpected will happen.
Just ask Mark May.
You may not know who Mark May is so I’ll give you a little summary about him.
Mark May was a well-known ESPN sports analyst who focused on college football.
Due to ESPN not doing well financially, they unexpectedly let him go.
I don’t know his financial situation, but I really hope he has an emergency fund.
What is an Emergency Fund?
You probably know what an emergency fund is but just in case you don’t I will give you a short explanation.
An emergency fund is a certain amount of money you set aside in a bank account.
It is only used for emergencies such as unexpected repairs and getting laid off.
How Much Money Should You Have In Your Emergency Fund?
Opinions vary on this but ultimately it’s up to you and your comfort level.
A good rule of thumb is 6 months of living expenses.
This is all the bills you need to pay to be able to live for 6 months with no income.
It should be more if your income is unstable.
But start with a reachable goal to build momentum and continue from there.
How Do You Build An Emergency Fund?
This is the more difficult part.
Start by consistently putting $5 in an account every week.
That will start the habit of saving.
After that becomes comfortable, increase the amount of money you save every week.
You may need to make lifestyle changes.
I know it’s not fun to talk about but you need an emergency fund.
I am willing to bet Mark May wishes he had one if he didn’t.
You never know what surprises might pop up
And when they hit, they can be devastating.
Have you started your emergency fund yet?
If so, let me know you use in the comments below.
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