• Home
  • About
  • Contributors
  • Write for Us
    • Submit Your Content
  • Discounts & Resources
  • Education
  • Advertise
  • Contact

Women on Business

Business Women Expertise, Tips, Advice and More to Build Winning Careers and Brands

You are here: Home / Reader Submission / 3 Questions to Ask When Building an Emergency Fund

3 Questions to Ask When Building an Emergency Fund

January 2, 2015 By Community Member

retirement savings money stuffed in piggy bankAccording to a recent Bankrate survey, only half of Americans reported that they have enough money to cover an unexpected expense. However, when the data is divided by gender, men appear to be more financially prepared in an emergency than women. In 2013, about 47% of women reported having an emergency fund, whereas 62% of men indicated they have a fund to cover unexpected expenses, says Financial Finesse.

Instead of finding yourself in a dire predicament when faced with an unforeseen expense, start building your emergency fund today.

1. How Much Should I Save?

In general, many financial planning experts recommend keeping three to six months worth of living expenses in a cash-like account. The idea is to have enough money set aside so you aren’t financially strapped in the event of an unusual car or house repair, medical expense or loss of income from disability or unemployment.

If saving several months’ worth of expenses seems daunting, it may help to begin with smaller, more reasonable goals. Start with a small, manageable amount such as putting away $25 per week into your emergency fund. When you find yourself accomplishing that goal, consider increasing the amount to $50 per week until your emergency expenses are fully funded.

2. Can I Invest My Emergency Fund?

Where you decide to keep your emergency fund is another important aspect. The purpose of the emergency fund is generally to have cash readily on hand, such as at a bank or a mutual fund company that sponsors a money market fund. Consider opening a separate account for your emergency expenses and keep it away from your everyday expenses.

3. What Qualifies as an Emergency?

While a last-minute vacation getaway might not qualify as an emergency expense, there should be some consideration as to what should be included.

It may help to differentiate between types of expenses that might be incurred unexpectedly. For example, there are income and expenditure shocks, such as a job loss or a large medical expense. Therefore, your emergency fund might be considered precautionary savings to prepare for either an income shortfall or unanticipated expense.

Expect the Unexpected

In any event, setting aside savings for an emergency fund is like expecting the unexpected. Whether the money is used next week or next year, it helps to be in control of your finances and be prepared.

About the Authors

Liane Rosenberg has been a fixed income portfolio manager at Value Line Funds since 2009. She came to EAM with more than 20 years of experience in fixed income portfolio management. Ms. Rosenberg received her Master of Business at the Fordham University School of Business, and her Bachelor of Arts, with a degree in English and Journalism, from the State University of New York at Albany.

Cindy Starke has been a portfolio manager at Value Line Funds since 2014. She joined EAM with nearly 20 years of mid and large cap growth investment experience. Ms. Starke received a B.S. in Business Administration from Fordham University and a M.B.A., with a concentration in Finance, from Fordham University.

Community Member

Women on Business Community Member

More Posts

Filed Under: Reader Submission Tagged With: business emergency fund, business savings, emergency fund

Sponsors

DHgate - Do business with China wholesalers online

Freebie!

Join Us!

Recommended Reading

ultimate guide to email marketing

Awards & Recognition

Categories

  • Board of Directors
  • Books for Businesswomen
  • Business Development
  • Business Executive Team
  • Business Travel
  • Businesswomen Bloggers
  • Businesswomen Interviews
  • Businesswomen Profiles
  • Career Development
  • Communications
  • Contests
  • Corporate Social Responsibility (CSR)
  • Customer Service
  • Decision-making
  • Discounts & Offers
  • Education
  • Equality
  • Ethics
  • Female Entrepreneurs
  • Female Executives
  • Female Executives
  • Finance
  • Franchising
  • Freelancing & the Gig Economy
  • Global Perspectives
  • Health & Wellness
  • Human Resources Issues
  • Infographics
  • International Business
  • Job Satisfaction
  • Job Search
  • Leadership
  • Legal and Compliance Issues
  • Management
  • Marketing
  • Networking
  • News and Insights
  • Non-profit
  • Online Business
  • Operations
  • Personal Development
  • Politics
  • Press Releases
  • Productivity
  • Project Management
  • Public Relations
  • Reader Submission
  • Recognition
  • Resources & Publications
  • Retirement and Savings
  • Reviews
  • Sales
  • Slideshow
  • Small Business
  • Social Media
  • Startups
  • Statistics, Facts & Research
  • Strategy
  • Success Stories
  • Team-Building
  • Technology
  • Uncategorized
  • Videos
  • Women Business Owners
  • Women On Business
  • Women On Business News
  • Women On Business Offers
  • Women On Business Partners
  • Women On Business Roundtable
  • Women on Business School
  • Work at Home/Telecommute
  • Work-Home Life
  • Workplace Issues

Authors

Quick Links

Home | About | Advertise | Write for Us | Contact

Search This Site

Follow Women on Business

  • Facebook
  • Pinterest
  • Twitter
  • YouTube

Copyright © 2023 Women on Business · Privacy Policy · Comment Policy