by bobzeenie » Tue May 31, 2011 03:51:50 AM
People need to save emergency funds.. this is essential in a household.
This is part of the structure of a household yet so few people do it.
You need to have at least 2-3 months of cash savings in place. This needs to be in an easy access bank account where you can get your money out right away.. IE.. don't put your emergency savings in a long term savings account. I've made this mistake and been caught paying huge penalties to get my money out.
I've had the refrigerator stop working, my wife's sudden health problems have required emergency spending, and I was glad to have the money in place. I didn't blink an eye when I had to take the money out of my account... And ... I didn't have to stay up all night worrying about how to pay for these things.. isn't that worth a little peace of mind?