A single one dollar bill. Money, cash, currency. UF/IFAS Photo: Tyler Jones.A single one dollar bill. Money, cash, currency. UF/IFAS Photo: Tyler Jones.What is an emergency fund?
An emergency fund is money set aside for unplanned expenses. Having emergency funds available to pay for unexpected expenses can ease the financial shock of a major car repair or leaky roof.
Start your emergency fund today by following these five steps:
1) Set a goal. Examine your budget and set a goal to contribute money to your emergency fund each pay period.
2) Track your progress. Keep a record of your contributions. Use traditional pen and paper, an app, or develop your own ledger with a computer program.
3) Be consistent with your contributions. Consider either setting up an automatic deposit into a savings account so your funds are transferred each pay period or determining the dates you will make a transfer into your emergency fund and stick to it!
4) Check your progress. Watch your emergency fund grow and keep track of your progress.
5) Share your success. When you reach your goal, celebrate with a trusted family member, or friend and then set a new savings goal. Encourage others to set a savings goal, too.
Remember, this fund is for emergency situations or unplanned expenses. Protect it and use it as intended. Keep adding to your emergency fund and watch your savings grow, knowing it will be there when you need it!