Building an Emergency Fund Doesn’t Have to Be Painful
The average American’s saving habits can be pretty scary. In fact, most have less than $1,000 on hand for emergencies like car repairs, health issues, or job loss. Whether the incident is just an inconvenience or straight-up emergency, they rely on credit cards, friends, family, or even their retirement accounts to foot the bill. Even if you’re not one of these people, you probably know someone who is.
The stats for our ability to fund an emergency expense are grim (MSNBC):
- • 66 million Americans have no emergency savings—as in zero dollars
- • 47 percent of Americans said they either could not afford an emergency expense of $400, or would cover it by selling something or borrowing money
- • 28 percent of Americans have saved enough to cover 6 months’ worth of expenses
Our Recommendation
We recommend you have a bare minimum of $500 that you can easily access. If you have $10,000 saved you should be covered for most one-time emergencies. Ideally, you’ll work your way up to stashing 6 to 8 months of your household expenses. Here’s how to get started:
- Create a plan. The most essential step is free. Write down how much you want or need for an emergency fund and then set a savings goal. Your goal should be going from [$x] to [$y] by [when], for example, “From $300 to $1,000 by December” or “From $2,600 to $10,000 by 2020.”
- Cut back on non-essential spending. You know the first cost-cutting recommendation we’re going to give you, right? Brew your own coffee. Seriously though, Starbucks and Netflix are nice, but not essentials. Cutting back for even a few months on non-essential purchases gives you extra cash to stash. Treat yourself to a splurge after you’ve reached your goal.
- Make it automatic. If you’ve trimmed $50 a week on unnecessary spending, send that money directly to your emergency fund before you’re tempted to use it. Online banking is a great tool for setting this up.
- Pay off your debt. We know this is easier said than done, but we have a great plan to help you do that using the Perpetual Wealth Strategy. Essentially, you borrow your own money to pay off high-interest debt. Sounds good, eh?
- Borrow from yourself. You can borrow money from yourself in a way you haven’t thought of before. Use the money to pay off your debt or use the Perpetual Wealth Strategy as your emergency fund!
Perpetual Wealth Strategy
The Perpetual Wealth Strategy is not a get-rich quick tactic. It’s a proven, disciplined, steadfast way to build, grow, and access your wealth for the rest of your life. The idea is straightforward, and we’re not shy about telling you that you use LIFE INSURANCE as the financial vehicle that will carry you to peace of mind. Not just any life insurance though, you’ll use dividend-paying whole life insurance with a cash addition. With a little thought, careful planning, and self-discipline, with the right coaching it’s seriously as easy as this:
- • Open a whole life insurance policy with a cash addition
- • Sock away cash
- • Watch your money grow safely and steadily
- • Use the policy loan provision to borrow money from yourself
- • Pay off debt or use the money for an emergency expense
- • Pay yourself back
- • Borrow money from yourself again
- • Pay yourself back. . .again
- • Pass the money and strategy down to your family
Our mission is to help you build not just an emergency fund, but wealth that is outside the reach of the Wall Street rollercoaster. We want to give you more details about the Perpetual Wealth Strategy and how it can help you get started in creating an emergency fund and more. We invite you to take 2 minutes to sign up for a FREE, extensive eCourse called Infinite 101®. You’ll receive access to video tutorials, articles, and podcasts. It literally costs you nothing to become educated on this ideal financial strategy and start building wealth.
Take advantage of this FREE resource by clicking below.
Reference: https://www.nerdwallet.com/blog/banking/life-build-emergency-fund/
