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How to Build your Emergency Fund

Family Balance Sheet

If you’re able, maybe use some of your stimulous money to put towards building an emergency fund. Your wants and dreams are secondary and should be saved separately. Unemployment and reduced income are considered emergencies, and so is a leaking roof, a broken hot water heater, or a dead car battery.

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Emergency Funds: Emergencies Happen When You Least Expect It

Family Balance Sheet

We spent the next couple of years building our savings back up, but I am now thinking that it needs to be increased. In 2007, we used about 6 months worth of living expenses and our savings came very close to drying up, so saving one year's worth of living expenses might be more wise for us. Save it and forget about it.