SavingAdvice.com is offering another contest. This time, you could win $100 — a great start for an emergency fund.
One of the things I’ve been enjoying about participating in the contests from SavingAdvice.com is the fact that all of them include a component of basic financial preparedness. The current contest has the theme of emergency funds.
You Need an Emergency Fund
The whole point of an emergency fund is to help you in the event of an honest emergency. You never know when disaster will strike, whether it’s a hurricane, an earthquake, or the groundwater seeps into your basement. When you end up with extra expenses, it really does help to have funds set aside that you can draw on. This results in less strain on your regular budget, and it can help you reduce the chances of complete financial disaster on top of physical disaster.
You can start small with your emergency fund, building over time. $100 is enough to get started, and then you can add what you can to the fund when you can add it. Make it automatic, and you won’t have to remember to add funds to your emergency account.
I like to use a taxable investment account as my emergency fund. The money is automatically invested each month, and it has the potential to grow at a faster rate. However, not everyone is comfortable with this arrangement. You can start your emergency fund in a high yield savings account, where the money will be safe. Remember: The point of an emergency fund is to help you be ready for the unexpected, whether your car breaks down, or a tornado damages your home. When combined with appropriate insurance, your emergency fund can help you avoid breaking the bank.
Now, for the contest. It’s a Rafflecopter contest, and you could win $100. I suggest you add that money to your emergency fund.