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About That Emergency Fund

If this pandemic has taught us anything, it's that having an emergency fund is really a good idea. Do you wish you had one? Let's think about getting one together - now.

The first question to ask yourself, is how much do you need to put away? Most people start with a 3-month plan. Gather your bills and add up the following:

· Rent

· Gas/Electricity/Water

· Cable/Internet

· Cell Phone

· Car payments/Auto Insurance/Gas

· Medical costs/Insurance/Medications

· Childcare cost

· Groceries/Toiletries/Personal Care

· Loan/Credit Card payments

Now, once you have all those, add them up, multiply by 3 for a three-month plan. I am going to estimate that your number is about $12,000 to $20,000 depending on your circumstances. Sort of shocking, I know.

Now, what to do? First, start a savings account. Second, pay down those bills. Third, every time you take out a loan, sign up for a monthly service, don't do it until you have three months of the payment that you can put in that savings account. (Example: New car payment is $250/month. Put $750 in your savings to cover the cost for three months before you take out that loan.) Fourth, start living under your means. A new job or promotion does not equal a larger home or newer car.

Smart saving and smart spending will help you sleep better when the next economic crisis comes. For more information contact Stevie Swain at



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