America Saves Week Day 2 — Save for the Unexpected
America Saves Week continues with Day 2 — Save for the Unexpected!
We like to break down unexpected expenses into two categories — rainy days and emergencies. Your rainy day fund only needs $500 - $1,000 to help you get through those smaller, unexpected expenses like a flat tire or weekend visit to urgent care. Your emergency fund is for a bigger unexpected event like a divorce or illness. Wouldn't it be nice to have a month or two of expenses in reserve in case you get layed off? Read our blog on this topic to learn more about rainy day and emergency funds.
While saving for emergencies is always a much-discussed topic in personal finances, here’s something that’s not as widely discussed: saving for opportunities. If you are in the position to save, you’re not only saving for an unexpected car repair, medical bill, or appliance breaking down — you’re also saving for the last-minute dinner invite with friends and family, the concert for your favorite artist, or the ability to grab a birthday gift for your child’s classmate. Today we want you to consider reframing saving for the “dreaded emergency,” and recognize that you’re also saving for fun and positive opportunities! Doesn’t it feel better to contribute to an OPPORTUNITY FUND vs. an EMERGENCY FUND?
Resource of the Day: Complete this worksheet to define what you are saving for!
Keep on Saving
Stay tuned for more useful information and resources about saving money this week. Here are the themes for the rest of the week:
Save Automatically | Monday, February 21
Save for the Unexpected | Tuesday, February 22
Save For Retirement | Wednesday, February 23
Save By Reducing Debt | Thursday, February 24
Save as a Family | Friday, February 25
Meeting your savings goals won't happen in just a week. It could take years of planning and following good habits to build your financial resilience. We recommend taking the savings pledge. By taking the pledge you will receive useful support, reminders and tips from the America Saves organization to keep you on track with your savings goals.