According to the survey from Pew Charitable Trusts, 60% of households had experienced a financial shock in the past 12 months. Even 10% of households earning more than $100,000 a year have no emergency fund. It’s time to start building that emergency savings fund, said Suzanne Woolley at Bloomberg. First, set up an account where you can’t easily get at the money. Use automatic paycheck deductions or account transfers for a set amount of money each month. Or set small goals, like a “dollar per week of the year approach; in week 1, you save $1; in week 13, you save $13; and so on.” You can also contribute to a Roth IRA and use it in case of emergency without penalty. Having six to nine months’ worth of cash in a contingency fund provides a peace of mind against a long list of possible emergencies. (bloomberg.com)
How to Get Ready for Financial Shock
