Now is the time to build your emergency fund
When it comes to financial security, one of the most important things you can do is build an emergency fund. An emergency fund is money put aside, usually in a savings account, to cover unexpected expenses. These can be things like medical expenses, last-minute travel or car repair. Most experts advise saving enough to cover three-to-six months of living expenses. However, even a smaller cushion of $1,000 can be a vital step in creating financial stability and freedom. It is the first step of Dave Ramsey’s 7 Baby Steps financial solution.
Unfortunately, a 2022 Bankrate study found that more than half of Americans can’t afford a $1,000 emergency. Not being able to cover an unexpected expense can cause debt, financial stress and delayed long-term goals such as retirement. Here’s how to build a $1,000 emergency fund, keep it growing and create financial security.
Read the full article in the Finances FYI section of The Seattle Times, sponsored by 1st Security Bank.