Why is it necessary to have an emergency fund?

We should all have an emergency fund, because no one is exempt from being fired, having a medical emergency, suffering a breakdown in the house or car or even having an unplanned trip.

By: Juan Carlos Guilbe
Financial Advisor - Youtuber
Debt Freedom USA

“He who saves pennies, gets to have dollars.” According to Vanguard, 56% of people do not have an emergency fund that covers 3 months of expenses. The best example of an unforeseen emergency has been the pandemic caused by the Covid19 virus. After this situation, have you considered having an emergency plan. Debt Freedom USA, the experts in debt relief and credit repair in the United States for more than 10 years, offers you the following advice.

1. Save little by little until you have $1,000

According to the financial guru in the United States, Dave Ramsey, having $1,000 saved can save us from an emergency. This amount could help us save ourselves from a basic emergency without depending on getting into more debt. This process of saving a thousand dollars will help us learn more about saving and at the same time give us a sense of accomplishment. (Financial goal).

2. Resolve your debts.

In order to have an emergency fund, one of the most important tips is to solve debt problems first. If you have a very difficult situation with your current debts, consult Debt Freedom USA for a free analysis of your situation.

3. Savings for emergencies

Depending on your finances, you can consider saving little by little, but you need to set goals. The duration of these savings will depend on the amount of income you have and how you can distribute it as best as possible. Including an online savings account, savings bonds, and cash, which can be kept in a safe deposit box at home.

4. Check your progress regularly.

Review your progress each month to help you stick to your personal savings plan and help you identify and correct any problems quickly. Regular reviews help ensure you stay on track and adjust your plan as necessary.

More finance tips

Follow our Financial Health channel on YouTube, where you can learn more about money, credit, debt, credit score repair and much more. Find us as: Juan Carlos Guilbe.

5. Savings for emergencies

Review your progress each month to help you stick to your personal savings plan and help you identify and correct any problems quickly. Regular reviews help ensure you stay on track and adjust your plan as necessary

About Debt Freedom USA

Debt Freedom USA, is a financial advisory company with 11 years of experience in the Hispanic market, offers advisory services for debt settlement, consolidation and debt negotiation. We quickly and effectively identify the best solutions to get out of debt, debt consolidation, credit repair, elimination of collection calls and we can help you make low payments on your debts.

Call us today for a free consultation at 1-800-854-3030 or email us at yury.uribe@debtfreedom-usa.com.