Where do you turn when a financial emergency strikes? Do you resort to credit cards, borrowing money from friends and family, or do you have some money set aside? How you respond to a financial crisis can significantly impact your finances for years to come. Tapping into resources that are meant for something else to cover an emergency can set your retirement back, take money away from a college fund, or even lead to bankruptcy. Creating a financial safety net lies at the foundation of any financial plan. We hope to never have to use it, but we're thankful when it's there in a time of need. Learn some of the ways you can create your own financial safety net.
Building Your Financial Safety Net
From Jeremy Vohwinkle, About.com GuideNovember 25, 2009
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Thanks Jeremy…always knew it’s important, but you forced me thinking seriously and doin somthing. Between, I’ll place a piggy bank at home to put all spare coins, might sound child-like, and accumulate some amount over a week or two that’s worth a drive down my bank.
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I have three piggy banks. I don’t think it is child like at all!
I use something like a piggy bank. I cut a slot in the wall in one of my closets and I will drop my spare change into it. About once every two months I scoop it all out from the hole I cut in the bottom of the wall, replace the “door” to the hole and take a trip to the bank.
Thanks a lot for this clue!
I have saved 31K for emergencies but was planning to use it because I thought one should live for the present.
After reading this blog I realised how correct I was for saving that amount. If no emergency happen I’ll still have the financial freedom to have my salary before it comes!
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