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Why I Have an Emergency Fund

Holly Lipovits

Posted on March 25, 2020 19:34

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Everyone should have an emergency fund, since we never know what life may bring.

Within the last few months or so, I’ve been listening to the famous "money guru" Dave Ramsey. I may only be a young 23-year-old, but I’ve been getting smart with my finances, and Ramsey has certainly helped. He assists many people with credit card debt, loan debt, and student loan debt from all over America. Dave always mentions that having at least a $1,000 emergency fund is essential.

And I’d have to completely agree that an emergency fund, during the current pandemic crisis, is essential.

 Ramsey states, "If you have debt, I recommend saving a starter emergency fund of $1,000 first. Then, once you’re out of debt, it’s time to beef up those savings and build a fully-funded emergency fund of three to six months of expenses."

I currently have only six months worth of an emergency fund, which is quite a good amount considering he suggests a starting point of $1,000. During the current pandemic, it’s a little scary with all of the layoffs and low staffing in stores, but this emergency fund can help during these times and provide comfort -- a safety net of sorts. Even with the student loans being on hold and some tenants pushing back rent for a month, it may still be a struggle for many families as most of the essentials have sold out. 

Unexpected events can occur anywhere, anytime, anyplace. It can be quite difficult to start an emergency fund, considering all of the expenses and debts many of us have, but even adding little amounts to this fund can ease your mind knowing it’s there for when the unexpected happens. And during this hard and uncomfortable time, many of us can use an emergency fund to buy groceries, pay off past due bills, or any other debts that may arise. 

Please consider an emergency fund as we may never know what will happen, such as the current pandemic. It may just save you a few headaches!

Holly Lipovits

Posted on March 25, 2020 19:34

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Source: ESPN
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