What is an emergency fund?
An emergency fund is money that you have put into a savings account over time for an unexpected (and unfortunately, typically unlucky) situation. This is an account that you don’t access every day and one that you only take money from when there’s an emergency. This money can be used for many different types of emergencies, from medical emergencies to unexpected car repairs.
Why do I need an emergency fund?
Sometimes having an emergency fund determines whether or not emergencies drain you financially. While your lifestyle may determine how much money you are able to put into this fund, it is typically good to have between $500 and $1,000 dollars in this account. However, don’t feel the need to put all this money in your account at once. Rather, you should build it up over time.
How can you get started?
America Saves, a partner of DailyPay, has created a pledge to help you save money, build wealth and reduce debt. They will help keep you motivated to continue to add money to your emergency fund and other savings accounts.
How can DailyPay help?
DailyPay lets you move your earned pay from the DailyPay Balance™ in your DailyPay account into your savings account at no cost to you with our SAVE feature. You can easily schedule your savings to be moved automatically to your account. This can help you to establish a well-funded emergency fund. Once that money is in a savings account, you will slowly see it accrue interest and grow!
Establishing an emergency fund may not seem important now, but the day you need it is the day you’ll be happy that you have been contributing all along.
Looking for more financial wellness tips? Check out other financial wellness resources.