Everyone should have some kind of emergency fund, a stash of money to deal with broken down cars, or any number of unexpected expenses. This crisis that we are in right now is the prime example. If you can’t make ends meet right now, worry about putting together an emergency fund later. But when this is over, instead of going out and shopping because you can, put that money into an emergency fund.
We recorded this episode before the COVID-19 pandemic. But the advice is still solid. Here’s what Dave Ramsey has to say about emergency funds. He recommends getting $1000.00 to start while you are paying off debt. After that, you need to save 3-6 months of expenses.
What is an emergency?
It can be hard to know when it’s ok to use your emergency fund. Take this quiz to see what counts as an emergency and what doesn’t.
Here’s a few online savings accounts you can start today with a low balance requirement
You don’t use the savings account to earn money, so don’t worry about the interest. The point is to have money in a separate place, that you can get to for emergencies, but don’t use for everyday things.
Access to over 43,000 free ATMs via checking or money market accounts.
An above-average 1.25% APY on savings.
No minimum opening deposits for savings or CDs.
$5 nonsufficient funds fee