Do you know how to build an emergency fund? It's easier than you think to start building an emergency fund. But, you need to start now! Having an emergency fund is an essential part of everyone’s financial planning. There are many reasons that you need an emergency fund, and there has never been a greater need to protect yourself and your family than today because of the often chaotic economic climate lately. How to Build an Emergency Fund With the economy often unpredictable, it is even more crucial to be prepared for the … [Read more...] about Top 4 Reasons You Need an Emergency Fund Now More Than Ever
This is a Reader Question in our the Reader’s Questions Series which highlight questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if your money question is chosen to be featured on a future blog post. If you're not familiar with Dave Ramsey's book, you should run right out and get it. It is one of my top ten best personal finance books that everyone should read. Now...on to our reader's question. This … [Read more...] about Reader’s Question: Should You Invest Emergency Fund in Mutual Funds?
One of the most important pieces of financial advice around there is to start an emergency fund. Most people are aptly aware of it but still choose to do nothing about it. They are not sure how to start an emergency fund. There could be many reasons for this as to why no one has acted on this advice yet. But, because of this over a third of Americans are unable to pay for unexpected emergency expenses, as their savings is simply not there. There is a lot of reasons to start an emergency fund today. How to Start an Emergency Fund Starting … [Read more...] about Cash in a Flash: Why You Need to Start an Emergency Fund Today
The other day I wrote an overview of Dave Ramsey’s baby steps system from his book, The Total Money Makeover. There are seven baby steps that you should follow in order that will lead you to financial peace that he discusses in his book which is one of the Top Ten Personal Finance Books of all time that you should be reading. Today, we're going to focus on baby step 3. Dave Ramsey's baby steps are… Baby Step 1 – $1,000 Emergency FundBaby Step 2 – Pay Off All Of Your Debt With A Debt SnowballBaby Step 3 – Fully … [Read more...] about Dave Ramsey’s Baby Step Three – Fully Funded Emergency Fund
The other day I gave a brief overview of Dave Ramsey’s baby steps system to financial freedom that he outlines in his book, The Total Money Makeover. There are seven baby steps that you should take in order to gain financial peace. Baby Step 1 – $1,000 Emergency Fund Baby Step 2 – Pay Off All Of Your Debt With A Debt Snowball Baby Step 3 – Fully Fund Your Emergency Fund Baby Step 4 – Save 15% Of Your Income For Retirement Baby Step 5 – Save For Your Children’s College Education Baby Step 6 – Pay … [Read more...] about Dave Ramsey’s Baby Step One – $1,000 Emergency Fund In The Bank
Recently, one of my coworkers asked my opinion about taking out a 401k loan to help replace a blown engine in his wife’s car. This is a horrible idea. Your retirement plan is not an emergency fund. Car troubles, uninsured medical expenses, house renovations, and other everyday items are not great uses for money that you have invested in your retirement fund. You should not use your 401k as an emergency fund. It was not designed for that, and you potentially ruin the benefits that the retirement plans were designed to give you. Some … [Read more...] about Your 401k Retirement Plan Is Not An Emergency Fund