For many of us, recent events have come as a massive shock. Personal health concerns, loss of loved ones, loss of jobs, and uncertainty about many other jobs have turned a lot of people’s worlds upside down and, for many, it’s been a clear indicator of how valuable an emergency fund can be.
An emergency fund is a really simple concept: it’s just a pool of money you have set aside for life emergencies. You can decide for yourself what constitutes such an emergency, but generally, such emergencies include things like a job loss, a sudden illness, or any other major out-of-the-blue expense.
Most of the time, emergency funds are stored in savings accounts, usually at a local bank or credit union. It’s often a good idea to have such an account accessible when you need it, but not incredibly convenient at all times because that raises the temptation of withdrawing money for non-emergency uses.
So, how can you get an emergency fund started?