Watching Your Wallet: rebuild emergency fund
LANSING, Mich. (WILX) - The pandemic really opened up a lot of people’s eyes and let them know that it’s important to have an emergency fund.
Most Americans had to dip into an emergency fund at some point over the last year.
Some of you may of you had goals to create one-- but never got around to it.
Maybe you lost a job or had unexpected expenses.
Kim Palmer, a personal finance expert with NerdWallet, says if you want to build it back up again- don’t let yourself get overwhelmed.
She says to pick a specific number that you’re going to save for in 2021.
“Because a lot of people get overwhelmed with even the thought of building up an emergency fund, we often hear that you need 3 to 6 months’ worth of expenses and that’s just not realistic for a lot of people. So, instead of having a goal that just seems impossible to meet think of something more realistic for you,” said Palmer.
Maybe it’s saving $500 or $1,000 over the next 12 months.
And make your goals small. Maybe you put $10 in it one week and $30 a few weeks later. Just build towards that goal.
Any amount you can set aside is good. And once you reach your goal, extend it. Making adding $500 more to your fund your next goal.
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