Can you cover a $400 emergency expense?
If not, you're not alone. A 2022 YouGov survey 📄 shows that 49% of adult Americans don't have enough savings in their emergency fund to cover an unexpected $400 expense.
Building an emergency fund is an essential step to get your "Financial Ducks" in a row before investing. Yet, it is shocking 😨 that many still struggle to cover unexpected expenses. It's essential to have an emergency fund before you start investing, and here are three reasons why:
👉Peace of mind with an Emergency Fund
Life is unpredictable, and you never know when you might encounter an unexpected expense, such as a medical emergency or a car repair. By having an emergency fund, you'll be prepared for any financial surprises that come your way, which can help you feel more secure in your overall financial plan.
👉Avoiding debt: Without an emergency fund, you might be tempted to rely on credit cards or loans to cover unexpected expenses. This can quickly lead to debt accumulation and high-interest payments, which can be tough to manage over time.
👉Investing risk: The stock market can be volatile, and you never know when the value of your investments might suddenly drop. Without an emergency fund to fall back on, you might be forced to sell your investments at a loss during a downturn, which can hurt your long-term financial goals.
"Building an emergency fund is not just a financial necessity, it's an investment in your peace of mind and financial well-being. By having a safety net, you can navigate unexpected expenses with confidence and stay on track towards achieving your long-term financial goals." - Jessica Perrone, Founder of Her Financial IQ
Building an emergency fund is an essential step in getting your "Financial Ducks" in a row before investing. You may be asking, "Jessica, I want to start investing. Why do I have to get my "Financial Ducks" in a row?" You're not the first one to ask this question! "Financial Ducks" is a term coined by Jessica Perrone in her "Before Investing" course. It refers to a comprehensive approach to building a strong financial foundation.
At Her Financial IQ, Jessica Perrone offers fun, relatable, and approachable courses that break down finance into manageable topics for females of all backgrounds. HerFinIQ's "Before Investing" course will take you step-by-step to show you how to get your financial ducks in a row before investing. Register today to start your journey towards becoming a confident investor and achieving financial independence!
Together, Learning to Build Wealth.
Jessica Perrone, Founder, Her Financial IQ Host, Her Money & Investing Show
About Her Financial IQ
Her Financial IQ 's mission is to empower women through personal finance and investing education. Through its friendly and approachable curricula, Her Financial IQ is committed to helping women achieve security and wealth through financial literacy. The program teaches crucial financial skills in a way that makes them accessible to women by using examples they can relate to. This down-to-earth approach helps women gain confidence in their financial decision-making. Check out the classes here.
Together, let's empower women to achieve financial independence and security by hosting or funding programs that provide personalized finance & investing workshops. If you are an individual, school, or organization that wants to support women or teens in their financial journey, message me today or visit: HerFinIQ.com
Sources mentioned in this article:
1. YouGov
Dear Friend: This content is for educational purposes only and is not investment, tax, or financial advice. Always do your own research. You are solely responsible for all investment, tax, and financial decisions that you make. Please read the full disclaimer here