When it comes to personal finances, the number of things you are expected to cover can be very overwhelming. However, if there’s one area we advise you focus on it is to start building an emergency fund. An emergency fund is easily accessible money that you set aside to help you cover any unexpected expenses that don’t allow time for you to adjust your existing budget. What classifies as an emergency can often depend on your age, lifestyle, and income.
If you’re wondering how to get your emergency fund started or you’re concerned about how much you should have saved for a rainy day, let our independently-operated insurance broker offices at Thomson, Schindle & Green (TSG) help lead the way to financial security. Meet with a friendly and experienced professional at one of our convenient office locations to begin preparing for all your financial planning needs.
How to Start Your Emergency Fund
Life has a tendency to go sideways when we least expect it. Making sure you can financially recover from these moments with an emergency fund is an extremely wise investment to make for you and your loved ones.
As financial planners and insurance brokers, we get a lot of questions concerning the need for emergency funds. Read on to learn more about starting an emergency fund, including answers to some of our client’s most common questions:
- Why Do I Need an Emergency Fund? – There are several reasons for starting an emergency fund. For instance, you may be trying to get yourself out of debt, you only have one source of income, you are a homeowner, or you have a friend or family member who needs financial help. Furthermore, one of the main reasons is to cover unexpected expenses such as:
- Losing your job
- You need to relocate
- Becoming ill or injured
- Damaging your car or getting into an accident
- How Much Should I Save? – Depending on your lifestyle and salary, how much cash you put into your emergency fund will vary from person to person. However, we advise that you establish an emergency fund with enough money to cover at the very least, three months of your net income. This way, you may avoid going into debt if something unexpected arises.
- How Do I Build an Emergency Fund? – Start by opening a savings account. This way, funds are not too easily accessible but can still be withdrawn when needed. Every time you get a paycheque, deposit a small amount into your savings or automate transfers to make it even easier to grow your emergency fund over time. In addition, talk with your financial planner for even more insight on how to successfully establish an emergency fund.
Visit a Trusted TSG Professional to Protect Your Finances
It’s never too late to start an emergency fund to protect both you and your family. Let our experienced insurance brokers at TSG help you fight against the record breaking debt levels that face our country. We can advise you on how to set a target, budget, and build your emergency fund if you don’t know where to start or find that you are falling short. If you live in Medicine Hat, Calgary, Brooks, or the Southern Alberta area and are looking for tailored financial planning and insurance services, contact us for reliable solutions.
Call us toll-free at 800-830-9423 to book an appointment. Meet with our licensed professionals at one of our convenient locations. You can also request a free insurance quote online, and we will respond as quickly as possible.