How Much Should Your Emergency Fund Be?
In life, we should expect the unexpected. I have had my share of unexpected events that resulted in financial difficulties and have seen many families get struck by the financial burden of unforeseen expenses. It doesn’t matter how much money you make or how well you plan, bad things can still happen. According to a survey conducted by the National Foundation for Credit Counseling in 2011, 64% of Americans do not have the money to pay for an emergency that costs $1000. Seventeen percent of the respondents said they would borrow from family or friends while another 17% said they would just have to neglect existing financial obligations. Either way, having insufficient savings in a special account for emergencies can and will drive you into debt. The added debt then creates another set of problems that exacerbates an already tenuous and fragile financial condition. The years 2008 to 2013 were very challenging for my family and I. There were many unexpected things that hap