Ultimate Guide To Emergency Fund Including How To Get 8%+ Risk Free Returns

[{"selector":"#anim-210b2919-79e0-4a05-8651-08e3fe2af6a7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-09be3622-01c8-4fca-8a30-882d5ce8f9a0","keyframes":{"transform":["translate3d(0px, -143.12033%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Why have an emergency fund? The basic purpose of an emergency fund as the name implies is to be available for use during unforeseen circumstances to avoid going into debt. All debt is not necessarily bad.

[{"selector":"#anim-195d28c1-8ff3-4404-8bc2-9f92e21fde16","keyframes":{"opacity":[0,1]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a8a33e77-d60f-4039-ac75-6a65b2b37122","keyframes":{"transform":["translate3d(0px, 136.41975%, 0)","translate3d(0px, 0px, 0)"]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d9d52cad-1cc8-4173-97d3-0c34e5e83a47","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43f31b5e-b3d4-4055-a22d-4ec415cf6988","keyframes":{"transform":["translate3d(0px, 97.04197%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3fee9b61-d6b3-4529-bb22-3a903649caf7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fa5b4ac7-b0d4-4977-87ce-356ebbd45523","keyframes":{"transform":["translate3d(-98.81517%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

In fact debt can be used strategically to accelerate Financial Freedom Countdown. However, we need to ensure that lack of planning for an emergency does not cause us to spiral into debt. Falling into unplanned debt usually means borrowing money at the last minute out of desperation which results in unfavorable lending terms.

[{"selector":"#anim-d5ca2827-d750-4de3-8117-9844953ac571","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c514a4f7-5d79-42af-a6d7-32b264f00136","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gray Frame Corner Gray Frame Corner Gray Frame Corner Gray Frame Corner Learn more

Some personal finance blogs consider the following scenarios where the emergency fund can be used – Roof repair – Car breakdown – An unplanned trip to visit a relative in poor health – Major health expense – Emergency pet care

[{"selector":"#anim-77bf8d1c-afd7-4cd2-8375-5fc0387eb405","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f2f18193-ce26-4313-bba8-199ce2ca43b1","keyframes":{"transform":["translate3d(0px, 209.78394%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

While each of these circumstances arise unexpectedly; they always need to be planned for in your regular budget.

[{"selector":"#anim-414a64d4-9d92-48d8-bb9e-f293863b940f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03003e0e-3dba-4b66-bf7b-c996f6a630d2","keyframes":{"transform":["translate3d(0px, 243.20990%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

When to establish an emergency fund? Start your emergency fund as soon as you have any income and before you even begin paying off any debt. Once you have at least saved $1,000 in your emergency fund; go ahead and tackle your debt.

[{"selector":"#anim-be09ab32-ebb0-409b-9d96-64102f65c98a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-44531041-af2c-4c1f-a641-8e3482e8cd09","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Gray Frame Corner Gray Frame Corner Gray Frame Corner Gray Frame Corner Learn more

How much emergency fund is needed?

[{"selector":"#anim-7a2a7ff7-b0dc-4db4-b9a5-0f66e3e904f1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0f45a684-585b-4fcf-8588-070759d29fe2","keyframes":{"transform":["translate3d(0px, 404.46864%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1bdb4e13-bebd-4fa8-9f2b-75758e74d86c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-93580ad3-6dae-48fd-8c44-46699fd27bfc","keyframes":{"transform":["translate3d(-129.80392%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0dc01780-4433-4bf5-8dec-d5160ba93564","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eb0fdc8f-3d2e-484c-9f37-e8bdf44b1f32","keyframes":{"transform":["translate3d(0px, 76.75121%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

An emergency fund should always be available at a moment’s notice in case of an emergency. The worst thing that you can do is to plan and save for an emergency and then have it lose value since you invested in a risky asset class for an additional yield.

[{"selector":"#anim-48c96cb1-4d61-40f7-a04a-22bf4dfed221","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a116c995-4888-4080-b467-15c4b36dfe45","keyframes":{"transform":["translate3d(0px, 85.56110%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ba0cabcf-6371-4698-9469-aabeb50ed519","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8e97f40b-6bb6-4814-81c5-e7391565c02e","keyframes":{"transform":["translate3d(-97.63034%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6311dc42-0dd3-438a-a307-3a954df17132","keyframes":{"opacity":[0,1]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e45f648a-b33d-4695-a863-19c96826a044","keyframes":{"transform":["translate3d(0px, 147.30743%, 0)","translate3d(0px, 0px, 0)"]},"delay":250,"duration":1400,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Swipe Up for more on Ultimate Guide To Emergency Fund Including How To Get 8%+ Risk Free Returns

[{"selector":"#anim-1ad5bded-b11b-46cd-9e4d-2e9da19a5756","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6608ef2a-58ea-4753-a2eb-23568c59461f","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-70532724-af01-4e37-a6aa-e0e035c9ca7f","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aa84787c-1e5c-454d-bb24-858681608029","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9522205d-7bc0-498e-b6bd-6c1feca3ca57","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-78668978-1817-4df7-b780-93864d2ceb2b","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c1fd011f-ee36-4386-957d-1e76aa54df55","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e01d0e1e-eb81-49bf-972c-88902d277d79","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e5765c1e-42ee-49f3-ba4a-4db6459a0970","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0fbad8be-3f2a-4644-906c-a844b2072882","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7793c396-4617-4b51-b603-8bcb21c90a9d","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-13eb5749-bdbc-411a-a92c-79f841540d8f","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-78058c22-0582-423e-854e-692943b3ff25","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a56d60f8-fda2-490d-8bb3-99ccddac6bc1","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Best Place For Technology Jobs Is Still San Francisco Bay Area How To Enjoy Financial Freedom Now While Still Working Towards It

Ultimate Guide To Emergency Fund Including How To Get 8%+ Risk Free Returns

Why have an emergency fund? The basic purpose of an emergency fund as the name implies is to be available for use during unforeseen circumstances to avoid going into debt. All debt is not necessarily bad.

Some personal finance blogs consider the following scenarios where the emergency fund can be used – Roof repair – Car breakdown – An unplanned trip to visit a relative in poor health – Major health expense – Emergency pet care

What should an emergency fund cover?

While each of these circumstances arise unexpectedly; they always need to be planned for in your regular budget.

When to establish an emergency fund? Start your emergency fund as soon as you have any income and before you even begin paying off any debt. Once you have at least saved $1,000 in your emergency fund; go ahead and tackle your debt.

How much emergency fund is needed?

The size of your emergency fund depends on your job security. Your job provides a monthly cash flow. When you are no longer employed you need to cover your regular expenses which would directly influence the size of your emergency fund

An emergency fund should always be available at a moment’s notice in case of an emergency. The worst thing that you can do is to plan and save for an emergency and then have it lose value since you invested in a risky asset class for an additional yield.

Where not to keep your emergency fund

Swipe Up for more on Ultimate Guide To Emergency Fund Including How To Get 8%+ Risk Free Returns

Swipe Up for more on Ultimate Guide To Emergency Fund Including How To Get 8%+ Risk Free Returns

Read more