An emergency can happen anytime; nobody can predict the future. This emergency could be happening in your house like your air conditioning system breaking down and needing repair or breaking your foot and needing surgery. No matter what happens, the money will be needed for the repair. An emergency fund is, therefore, that amount of money set aside to fix any condition that happens in life. This is very important because if you don’t do that, the emergency can lead to debt, stress, and sometimes even eviction or foreclosure. If you are thinking of cash flowing these situations, who knows whether you will lose your job before such occurrence. This is why Peter J. Burns III set up different emergency funds for businesses.
How Much Should You Set Aside?
Before you can determine the amount of emergency fund you need to keep, you need to think about the worst occurrence that could happen to you (this can be losing your job). The best amount to keep in this case is around three to six monthly payments. Your monthly payments may include water/electricity bill, cell phone bill, mortgage/rent, cable bill, groceries, insurances, and so on. These are unavoidable monthly payments that you must add up. When you have such amount available, you will be able to live your life without stress until you can get yourself back together again. If it’s your business, you need the funds for unavoidable bills too while you look out for loans to get back on the ground. If such a fund is not available, you may lose employees and your business in no time.
When Should You Start Saving?
You should start right away! To be financially stable, you need to set aside an emergency fund apart from getting out of debt. Unfortunately, Murphy’s Law, which states that “what can go wrong, will go wrong” is always true especially when the emergency fund is unfunded. Always fund your emergency account before buying that house, car, TV, or anything else for your company. Immediately you use the emergency fund to cover an event, make sure you fund it back immediately and you will be fine again. Don’t spend lavishly until you fund your emergency account.
Why Are You Saving?
As the name implies, this saving is for emergencies ONLY. If you need new shoes or TVs for your office, you don’t have to touch this emergency fund. Never use this fund for everyday purchases. It would be best if you disciplined yourself enough not to make use of this money anyhow. This fund is strictly meant for emergencies. If you don’t know, emergencies are those situations that will affect and disturb you from making money or living well. Some of the examples of this include the breaking of your house/apartment, car troubles, medical problems, and loss of a job. If you decide to use this fund anyhow, you won’t have any fund for an emergency.
Where Can You Keep These Funds?
You must keep this fund somewhere you can easily get it. This is because most situations require immediate funds. Since it is for emergency purpose, you can’t invest the fund in a CD, bond, or stocks. The funds need to be in cash or saved in normal savings or checking account. If you can’t keep it in any of the above, you can keep the funds in a safe.
Where Can You Get Emergency Funds?
You can get emergency funds from different institutions. One of these is designed by Peter J. Burns III, and it is known as the Burns Funding. This is a no interest funding program that is made available easily. You don’t have to wait for days before you get the funds. Burns funding is available after verifying your information immediately. Contact Peter J. Burns III now for more information about how you can get these funds for your emergency needs.