Budgeting and Building a 12 Month Emergency Savings Fund
In this economy with the unemployment rate looming at over 10% in many parts of the country, you need to get an emergency fund started. Many people will say that they can’t afford it. You will be surprised what you can afford especially when you have it automatically deducted from your pay.
You can Earn 1.35% APY* at www.hsbcdirect.com. It is easy to setup in a few minutes online and this savings account will connect to any checking account you have.
When saving I am not so concerned about the interest rate you are earning as much as the regular intervals of saving consistently and making it transparent. The interest rate paid on this account is actually not bad, but that is not the main point.
The main point is to get a savings account setup and start putting $50 -$100 in it each month. If you can afford more than do it. If you can’t even $25 a month will add up over time. The real thing we are talking about here is getting started. That is the hardest part. You need to set as your goal to get a 12 month emergency fund in place that will cover all of your expenses for a year.
This will give you a great feeling when you know if something would happen you will have this as a safety net. Yes you can do it. Get started today.
