None of us would like to believe it, but at some point in our lives we’re going to have an emergency. It might be a broken arm or a deep cut, or maybe your roof will decide to blow off in the next storm. Whatever the case may be, it’s going to cost us a pretty penny. Are you ready for that expense?
How Much Should You Have?
So how much should you have in your emergency fund? For many of us, if we had a thousand bucks sitting on the side doing nothing, then that would be quite the blessing, but is that really enough? How much does the typical roof repair cost? I would say anywhere from $5,000 to $10,000. Suddenly your $1,000 doesn’t seem quite so great does it? Where would you get the spare money? Well, I suppose if you had no other option you could pay with your credit card, or maybe you could apply for an instant cash loan , but if you could better prepare for these emergency funds and have the cash on hand before they happen, I would strongly suggest that option. As a rule of thumb, everyone should have 6-12 months-worth of expenses stashed away in an account that’s very easy to get to.
How to Beef Up Your Emergency Fund
All of us have things to sell that we really don’t need. If I knew that I didn’t have the proper emergency fund and anything could happen at any time (and it really could) that would take me under, then it’s time to sell some things. What is it that you hardly ever use and could do without? If you’re like the average citizen, you should be able to come up with a pretty big list. Do you have any spare cars that you really don’t need? How about lawn equipment? Fancy appliances? If you really thought about it, I bet you could come up with a list of items that could gross you over a thousand dollars. If selling stuff doesn’t get you that much, then maybe it’s time to get a second job until that fund is appropriately funded. You’ll be glad you did when that emergency comes your way!