The importance of them

Emergency funds can be the difference between spending a thousand, or spending tens of thousands of dollars in interest. In a 2019 study, 40% of Americans reported that they could not afford a $400 emergency. This is another way of saying that 40% of Americans have no financial flexibility or freedom. 

Imagine if you had a critical home repair to do. It would cost you $2000, could you afford that? If you had a 6-month emergency fund (6 months of expenses saved), you would easily be able to afford it! However, if you didn't have anything in savings, you'd have to use a credit card, and their interest rates reach an average of 19%! That means that you would pay $380 in interest, even if you paid it off in only one year!

Here's how to get one: