{"id":25023,"date":"2019-12-11T16:41:23","date_gmt":"2019-12-11T21:41:23","guid":{"rendered":"https:\/\/www.avant.com\/blog\/?p=25023"},"modified":"2022-08-24T15:53:23","modified_gmt":"2022-08-24T20:53:23","slug":"prepare-for-the-unexpected-with-an-emergency-fund","status":"publish","type":"post","link":"https:\/\/www.avant.com\/blog\/save\/prepare-for-the-unexpected-with-an-emergency-fund\/","title":{"rendered":"Prepare for the Unexpected with an Emergency Fund"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you\u2019ve found yourself with a little extra money in your budget this month, how are you going to spend it? Or, better yet, how are you going to save it?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having a dedicated fund for emergencies helps you cope when something happens, giving you a buffer that protects your savings. Knowing that things are paid for during an emergency saves you from having to worry about money and lets you focus on getting your life back on track.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start by putting away a little every month and aim for a fund of $1,000 to start with. From there, you can work on building up toward three or even six months of expenses so that you won\u2019t have to turn to credit cards if you\u2019re out of work or have an unexpected emergency.<\/span><\/p>\n<p><b>Unemployment<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Sudden job loss can leave you without income for weeks or potentially months. When you\u2019re not working, your monthly expenses won\u2019t stop<\/span><span style=\"font-weight: 400;\">\u2014<\/span><span style=\"font-weight: 400;\">you\u2019ll still have to pay all your bills and take care of your health. Average household expenses in the U.S. are approximately <\/span><a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/cesan.pdf\"><span style=\"font-weight: 400;\">$5,000 each month<\/span><\/a><span style=\"font-weight: 400;\">, and you\u2019ll need to have that much set aside for each month that you\u2019re out of work.\u00a0<\/span><\/p>\n<p><b>Medical emergencies<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Having an unexpected accident or illness will bring costly hospital bills, with or without insurance. If you get injured and need emergency care, an ER visit can cost you hundreds and possibly <\/span><a href=\"https:\/\/www.thebalance.com\/average-cost-of-an-er-visit-4176166\"><span style=\"font-weight: 400;\">thousands of dollars<\/span><\/a><span style=\"font-weight: 400;\">, and any follow-ups or medication prescribed would add more on top of that. If an accident happens while you\u2019re traveling out of network, you could be facing significantly steeper costs than at home. And if you have to take time off from work to recover, you\u2019ve got even less income to deal with the new financial burden.<\/span><\/p>\n<p><b>Cost of living increases<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Spikes in rent or the price of gas can easily rock your financial stability. If you\u2019ve got a pretty tight budget and know what you can and can\u2019t spend, a sudden increase in living costs can be significant. Average rent prices in the U.S. rose by <\/span><a href=\"https:\/\/www.rentcafe.com\/blog\/category\/rental-market\/apartment-rent-report\/\"><span style=\"font-weight: 400;\">2.5%<\/span><\/a><span style=\"font-weight: 400;\"> in 2019, and if your rent goes up you might have to scramble to come up with the balance moving forward.\u00a0<\/span><\/p>\n<p><b>Sudden moves or travel costs<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Having to travel or move for work or personal reasons can sometimes leave you paying out of pocket. Whether you\u2019re packing up and moving cross-country or some place nearby, you\u2019ll incur plenty of unexpected costs, from moving supplies to truck rental. If you\u2019re moving locally, expenses can range <\/span><span style=\"font-weight: 400;\">from <\/span><a href=\"https:\/\/www.homeadvisor.com\/cost\/storage-and-organization\/hire-a-moving-service\/\"><span style=\"font-weight: 400;\">$800 to $2,000 for a four bedroom house<\/span><\/a><span style=\"font-weight: 400;\">. Moving <\/span><a href=\"https:\/\/www.homeadvisor.com\/cost\/storage-and-organization\/long-distance-move\/\"><span style=\"font-weight: 400;\">across country<\/span><\/a><span style=\"font-weight: 400;\"> or out of state is even more expenses, averaging about <\/span><a href=\"https:\/\/www.homeadvisor.com\/cost\/storage-and-organization\/hire-a-moving-service\/\"><span style=\"font-weight: 400;\">$1,000 per room<\/span><\/a><span style=\"font-weight: 400;\">.<\/span> <span style=\"font-weight: 400;\">Similarly, if you start a new job with a longer commute, you might need extra funds to cover a bigger gas bill each month.<\/span><\/p>\n<p><b>Car repairs<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you use a car to get around, repairs and maintenance can add up. Taking good care of your vehicle means regular maintenance<\/span><span style=\"font-weight: 400;\">\u2014oil changes, headlight replacements, transmission fluid, which you should be able to factor into your budget in advance. But an unexpected windshield crack or popped tire could cost <\/span><a href=\"https:\/\/www.libertymutual.com\/masterthis\/common-car-repair-costs\"><span style=\"font-weight: 400;\">a few hundred dollars<\/span><\/a><span style=\"font-weight: 400;\"> out of pocket. And more serious repairs or part replacements like a new suspension or transmission could set you back thousands before you can get your car back on the road.<\/span><\/p>\n<p><b>Start Building Your Emergency Fund\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Having an emergency expense fund can protect you from scrambling when unexpected situations arise. Once it\u2019s in place, you\u2019ll have peace of mind knowing that you\u2019ve got a plan to deal with whatever may come your way.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve found yourself with a little extra money in your budget this month, how are you going to spend it? Or, better yet, how are you going to save it?\u00a0 Having a dedicated fund for emergencies helps you cope when something happens, giving you a buffer that protects your savings. Knowing that things are [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":25025,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[1420],"tags":[],"class_list":["post-25023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-save","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - 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