Posted On: September 21, 2023 by First Community Bank and Trust in: Community Banking, Community Banking Advocacy, Community News, General
This guide was published by the Consumer Financial Protection Bureau.
We’ve all experienced unexpected financial emergencies—a fender bender, an unexpected medical bill, a broken appliance, a loss of income, or even a damaged cell phone. Large or small, these unplanned expenses often feel like they hit at the worst times. Setting up a dedicated savings or emergency fund is one essential way to protect yourself, and it’s one of the first steps you can take to start saving. By putting money aside—even a small amount—for these unplanned expenses, you’re able to recover quicker and get back on track towards reaching your larger savings goals.
This guide will help you answer the following questions:
What is an emergency fund?
Why do I need it?
How much do I need in it?
How do I build it?
Where should I keep it?
When should I use it?
What is an emergency fund?
An emergency fund is a cash reserve that’s specifically
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