Press Release, January 12, 2009
With today’s volatile economy, creating an emergency fund isn’t just a good idea, it’s almost a necessity. Currently, 41% of Americans have no emergency savings1, and almost half of workers live paycheck to paycheck just to make ends meet.2
Financial experts recommend having an emergency fund of at least three to six months’ savings. Primerica, a financial services industry leader, offers four key tips clients can follow to start building a financial safety net.
1. Separate savings. One of the easiest ways families can start an emergency fund is to open a separate savings account or money market fund. Money in this account should not be withdrawn unless a true emergency – such as a major home or car repair, hospital or other large medical bill, etc. – arises.
2. Keep the change. Loose change left over from daily purchases can add up quickly. Clients are encouraged to save single bills and change and deposit that money into their savings account at the end of each month.
3. Keep paying yourself. As clients pay off big debt or credit cards, it’s a good idea to continue to make those same monthly payments – into their savings account.
4. Earn extra cash. Start a part‑time business or work a few hours a week at a second job to beef up an emergency fund. Business opportunities, such as Primerica’s part‑ or full‑time opportunity, are great ways to do something enjoyable while padding the bank account.* More information is available here: Primerica Business Opportunity.
Starting an emergency savings account doesn’t have to be complicated. Clients should save what they can and put extra away when they have it. Even starting small can make a big difference in the long run.
1Parade, July 13, 2008
2CNN.com, viewed October 14, 2008