When budgeting for all of your monthly expenses, you should also include funds for an emergency stash (or saving account).  It should be one of your top priorities because, without it, you are apt to have an emergency arise that you can’t handle.  Doctor or hospital bills, auto repairs, or any other emergency situation can occur at the spur of the moment and if you don’t have an emergency stash of money, you can find yourself in a bad predicament with nowhere to turn. You should put some money in your emergency stash each time you get paid, even if it’s only $20 to $30 a month. 

Just look at it as another bill you must pay to prepare for any future unplanned expenses. Any financial expert will tell you that the ideal amount of savings you should aim for is an amount that would take care of you and all of your bills for at least 3 months. 

This way, if something should happen that prevents you from working for a short period of time, you would still be able to maintain your current living expenses. Even if you can’t possibly put away more than $10 to $20 each paycheck, then put that amount aside and don’t touch it unless a dire emergency should arise. 

Don’t “borrow” from the stash just to get something you want or you will get into the habit of continuously doing that.  Before long, there will be no money left if you get into the practice of “borrowing” it.

If you find that it is virtually impossible to put any money into an emergency stash, then start looking at your other weekly or monthly expenses and find a way to cut back enough so that you can put some money away. 

For instance, if you eat out at a fast food restaurant twice a week, start eating at home instead.  With fast food prices as high as they are these days, that should give you an extra $12 to $15 each week that you could put aside.  There are ways to cut back on many of your expenses that would enable you to have an emergency stash. If you have credit cards, stop using them. 

Look at the bills you get each month to determine the interest rates they are charging you.  If you have a good, solid history of paying your bills on time, you might be able to get your credit cards companies to lower your interest rates.  This would lower your payments and/or reduce the total amount you owe them. 

Make sure you pay all of your bills on time to avoid getting late charges added to your account. You should put the money you save into an actual savings account, preferably one that earns interest, instead of trying to keep the cash hidden at home.  If you keep the cash on hand or even put it in your checking account, you will be more likely to spend it without thinking twice about it. 

Credit Unions are great places to use for a savings account.  If you work somewhere that offers “payroll deduction” through a credit union, you can have the money taken from your check and put into a savings account for you.  Many people find this to be the easiest way to save money. No matter how much you are able to save each month, get into the habit of doing it regularly without fail. 

Should an emergency arise, you will be able to breeze right through it with no problems as long as you have that emergency stash to use.

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