WHY YOU NEED AN EMERGENCY FUND

In life, surprise expenses are bound to happen. If you had an unexpected emergency expense of $400, would you be able to pay for it? If your answer is, “No,” you’re not alone. Thirty-seven percent of Americans said they would have difficulty with an emergency expense of $400.¹ Furthermore, over 145 million Americans have little or no savings at all.²

With an emergency fund in your back pocket you will have the funds to pay for the little emergencies that pop up in life.

Such emergencies are:
• Job loss
• Medical or dental emergencies
• Unexpected home repairs
• Car troubles
• Unplanned travel expenses

Start a goal to save $1,000 for your emergency fund. Then, up the ante to save three to six months’ worth of expenses. That way you’ll be prepared for the curve balls life throws your way. Try cutting back on unneeded purchases, maybe try making your own coffee and lunches to take to work and put the money you would’ve spent on extras towards your emergency fund. You’ll be surprised how fast small amounts can add up quickly! Plus, you’ll find out that having that extra stash of cash for a rainy day can help keep your stress level down and prevent you from making poor financial decisions such as taking out a loan or borrowing from your retirement plan.

QUESTIONS?

If you have questions about your retirement plan, contact the Beneco team. We’re here to help you find the answers to secure your financial future!

¹Fed Reserve Report on the Economic Well-Being of U.S. Households in 2019. May 2020.
²GOBankingRates Survey: 69% of Americans Have Less Than $1,000 in Savings, December 2019.

This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice.