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, AFC, Founder, 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!
Finances can feel overwhelming, regardless of what stage you are in life. Schedule your free financial clarity consultation today and let us help you find your joy around finances.
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