Monday, July 28, 2014

Savings & Budgeting 101 - Emergency Savings

Saving & Budgeting
If you think your personal finances are in need of an overhaul, you aren't alone. According to the US Census, the average American household is falling short of their savings goals. I, along with First National Bank  hope to give you some basic tools to help you establish and achieve your personal financial goals. If you have any questions or concerns about saving and budgeting contact Nick Zwiebel with First National Bank and let him know I sent you. Follow me for the next six Mondays for some great tips, tricks and ideas to keep your savings and budgeting on track.

Last Monday, we discussed Long Term vs Short Term savings and what exactly they mean along as why they are so important. – Well according to First National Bank, an Emergency Savings should be based on your monthly net household income. Below is a great example of what you should set aside for an emergency.  

Emergency Savings

Based on your monthly net household income
of $3,000, you should have approximately $9,000 - $18,000
set aside for an emergency (3-6 months of living expenses).
          Why? You may be asking why so much, well an emergency savings is just that, in case of an emergency this is money you will live off of in case you are unable to work, if you lost your job, it may take 3-6 months to find a job. If you are disabled, most policies will not start providing you income for at least 90 days.








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