Real-life tips to help you build an emergency fund
When’s the last time you had to come up with more than $100 to pay for something unexpected? Maybe it was something happy—a wedding present for a friend. Or maybe there was a less joy-inducing reason, such as a home repair. Did you have to pay a bill late in order to come up with the cash—or charge it to the credit card?
An emergency fund is a tool you can use for just that. But cobbling together enough dollars to create one of any size can be daunting—especially when you have lots of competing financial priorities. The key is to calculate how much you need, and simply start where you’re at. (You don’t have to put it together overnight!)
- Make a plan. A financial professional can help you work through your short- and long-term financial goals. Don’t have one? Check with your HR department or employer to see if your company’s retirement savings plan offers this service. Or, we can help you find one.
- Map out your goals. A financial plan is a great place to start. Find out how to create your own.
1 Bankrate Financial Security Index, https://www.federalreserve.gov/publications/2019-economic-well-being-of-us-households-in-2018-dealing-with-unexpected-expenses.htm
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment, or accounting obligations and requirements.