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Without an Emergency Fund You Are One Missed Paycheck From Disaster
What would you do if an expensive emergency arose? If you’re like 63% of Americans, the answer to that is NOT, “Use my emergency fund to pay for it.” According to a recent survey by Bankrate, less than 40% of Americans have enough emergency savings to take care of a crisis that costs $1000 or more. They are one paycheck away from financial disaster.
When your finances are tight, sometimes your first impulse is to spend every dime. Many people focus on things like paying off debts, stocking up on food and supplies, or paying more than the minimum payments on bills.
However, that may not be your best bet. Don’t get me wrong – paying off debt is absolutely vital, but most experts recommend establishing an emergency fund as the first step back to financial security.
So what about you? Do you have an emergency fund? It’s really just one more prep that you should put aside for a rainy day.