Having emergency savings means you won’t have to use credit or borrow money from friends or relatives if something unexpected happens. Savings makes you less financially vulnerable. For this reason, saving money makes sense even if you are also repaying high-interest credit card debt. Try to do both if you can.
An emergency savings or rainy day fund is an amount of money, usually in a savings account you don’t have easy access to, that is set aside for those “what ifs.” For example,
- What if the electricity goes out and all the food in my freezer goes bad?
- What if a pipe bursts and my house is flooded?
- What if a tree falls on my roof?
Celebrate America Saves Week, an annual savings promotion campaign, by making a commitment to save, maintaining your current level of savings, or increasing the amount you set aside for future financial goals. Every dollar saved makes a difference!
As we celebrate America Saves Week, it is important to recognize benefits from savings that extend beyond one’s finances. Research indicates that having money in savings can reduce stress and improve relationships with family members. Savings also builds resilience when unexpected events happen. More savings info: http://bit.ly/ASaves
Looking for a challenge? Participate in the online 2015 America Saves Challenge for daily motivation to save: http://rutgers.ancc.net/ (register an account and select “2015 America Saves Challenge).
Take action ahead of disaster, start or increase your emergency fund!