The Ultimate Emergency Fund Checklist
An emergency fund can be your first line of defense against a financial emergency. Think of it as a savings fund that prepares you for the unexpected, such as a hospital bill, the loss of a job, or the need for a major home or car repair. Without an emergency fund, such financial issues can rattle your security and impact everything from your debt to affording everyday expenses.
The good news is that you can start your emergency fund today.
What Should Be Part of Everyone’s Emergency Fund Checklist?
Create a Budget First
Making a budget is required to start an emergency fund, making it a vital part of an emergency fund checklist. By outlining your income and your expenses, you get a reliable source for determining just how much you will be able to contribute to an emergency fund or perhaps what you need to adjust to make an emergency fund a reality.
You may also be able to set certain financial goals and outline contributions to an emergency fund that can help you accomplish them quickly.
Provide Yourself with a Financial Cushion That Fits Your Situation
There’s not a perfect amount that everyone should keep in their emergency fund, but part of your checklist should involve making a responsible and informed determination. Financial experts suggest having an emergency fund that covers your expenses for between 3 and 6 months.
If you’re single or have one source of income, you should probably aim for the higher end of the fund spectrum. Those who enjoy a couple’s income or have steady employment can get away with the lower end.
Determine a Contribution Plan
Next on your emergency fund checklist is figuring out a plan to regularly contribute to it. Some find doing it on their own works, usually picking out a portion of their monthly income and depositing it into the emergency fund.
Others save any time they can or commit to beefing up an emergency fund with tax returns or other expected windfalls.
Another approach that may work for you is setting up automatic deposits to an emergency fund via your bank. You can create an account and then schedule a certain amount from your checking to be transferred to your emergency fund on a set day each month.
Find Ways to Increase Your Fund
Every little bit helps when it comes to an emergency fund. Whether you have a full-time job or not, extra sources of income are always welcome, especially if part of your emergency fund checklist is using it to hit specific goals.
Depending on your needs — paying down debt or student loans, saving to buy a house — one or more side gigs may be useful, especially if they fit in your schedule easily. This can include renting out a room or assigned parking space, food delivery, or freelance editing jobs.
Consider Where to Store Your Fund
A savings account is a traditional place to keep an emergency fund. It’s easily accessible — accessibility is an important part of any emergency fund — but the interest rates earned are often low.
There are other options to explore, including money market funds which have better earning rates while still being low risk, as well as certificates of deposit, which also have great rates but the chance of being penalized if you take out any money before maturation.
There may be a compromise, such as putting some of your emergency fund in a CD and the rest in a savings account.
Know Your Options
Even with a solid emergency fund, there are additional ways to help overcome a financial emergency that keeps you on the right path to meet your goals. A fast car pawn is one such option.
A fast car pawn at Georgia Auto Pawn, Inc. uses your car’s title as collateral for a pawn of up to $15,000 to help with a slew of financial emergencies. It can take as little as 30 minutes to qualify and once you do you get the cash you need the same day or the very next business day.
There are several easy ways to begin the car pawn process. You may find it convenient to begin online by filling out the short inquiry form on our homepage, but you can also call or directly visit one of our locations near you to get started.
If you begin online, once you submit the form, one of our representatives will give you a quick call right away to guide you through the rest of the fast auto pawn process.
Get Started Today
An emergency fund checklist can get you on a proper financial path quickly with a highly beneficial nest egg. A fast auto pawn can also help you overcome a money emergency quickly. Either start online, give us a call, or visit us today for help.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.