It might be expensive car maintenance or a leaky roof – every once in a while there’s a surprise expense that threatens to throw your budget off-track. However, maintenance for your car or home shouldn’t be a surprise, we know it’s going to happen — we just don’t always know when.
To help cope with an unexpected expense, you should have an emergency fund — money that’s separate from what you need to cover regular bills like your mortgage or rent, utilities, and groceries. Having about six months income is a goal, but don’t be discouraged if that seems like a lot. Start by setting something small aside, and add to it each week. And if you come into some unexpected money, consider contributing at least part of it to your emergency fund.
With a financial cushion, you’ll find that you’ll be able to absorb surprises without spinning out of control.
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