Many people can't put away an emergency fund because they fail to realize the true definition of an emergency fund. An emergency fund is money put away, that is easily accessible used only in case of an emergency. Emergencies don't include the last pair of Prada stiletto hills or the lastest in video game equipment. True emergencies may consist of a job loss, death in the family, unexpected accident, relocation expense ect. Emergency funds are a necessity with any savy buisness person. Having a cushion is one of the major things that keep many people afloat when unforseen emergencies occur.
The majority of individuals can agree that your emergency fund should be able to pay your mortgage and living expencies for at least 3 to 6 months. Choosing not to save as much as you can is simply not a smart decision especially in todays economy. Anyone can find themselves in a financial hardship. The loss of a job can send you spiraling into financial ruin when you are left without a financial cushion. The importance of having an emergency fund should not only be stressed as impotant to families but rather single individuals as well. Its never to early to put away a little emergency fund.
No one is exempt from being finacially responsible. Married women often feel that since they have husbands, they may not need to save. This is simply not the case. Maritial status does not negate the importance of having an emergency fund especially if you have children. Many feel that wealthy people are immune to putting up emergency cash but this is also a misconception. There are many men and women who find that their assets are frozen and property is seized because they owe the IRS. In these types of cases having money put away can help keep you afloat until you can make some type of financial arrangements.
There are some individuals who may find the saving process a little difficult, not because they don't have the money but rather they don't have the discipline that they need to put away money. If this is the case you may need to hire a financial planner to help you attain your desired goal. Financial planners can sit down with you and go over your finances and customize a savings plan that is right for you. If you have a tight budget then saving doesn't have to be a four letter word and it can be done without making you feel as if you are in a financial crises. One of the many ways you can save would be to pay yourself ten percent of what you make every pay period. This may not seem like a lot but it adds up rather quickly. When this is done consistently, before the year ends you would have saved a nice little emergency fund.