Emergency Fund- Protection in Recession

Have you heard the news? We’re in for a very bad recession, and possibly even depression! The news outlets make sure you know all about the bad things that are to come and then tell you, “but now is not the time to panic!” What are we supposed to do when they make it sound like the economy is about to crash beyond all repair? The answer to that question is SAVE! Before everyone in the world loses their job, we need to start saving like we’ve never saved before. Cut back on the luxuries and put away some money.

An Emergency Fund is a great way to protect yourself from some of the hardships that can come with life.  What is an emergency fund you ask? It is nothing more than a savings account for a rainy day. By setting aside enough money to live off of for about 6 months, you can protect yourself from hard times that may come. If you lose your job, you’ve got a few months to find something else before you really have to worry. If the furnace breaks down in January, you can afford to have it fixed without going further in debt. It isn’t going to keep you from having money problems, but it will buy you some time to figure out a plan. So get started saving today, an emergency fund isn’t just a nice idea, it is a necessity, especially with the headlines we’re currently seeing.