RICHMOND, Va. (WWBT) - The pandemic really opened up a lot of people’s eyes to how essential an emergency fund is as a safety net.
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. ”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 month 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 Kim Palmer.
Maybe it’s saving $500 dollars or a thousand dollars over the next 12 months. Make your goals small. Maybe you put $10 dollars 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, Palmer says to extend it. Make adding $500 more to your fund-- your next goal.
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