An emergency savings account
comes to your rescue when unplanned expenses arise.
The car breaks down, the roof springs a leak. These
situations create a certain sense of alarm, not unlike
emergency vehicles with high-pitched sirens and flashing
red lights. But unplanned expenses can be handled
with emergency savings -- the financial equivalent
of a handy home defibrillator.
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| Emergency fund essentials |
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In the absence of that savings, credit
card or high-interest rate debt often fills the void.
"If there is one thing financially
that will help you sleep better at night, it's the
knowledge that you have some money in the bank for
a rainy day," says Bankrate's Senior Financial
Analyst Greg McBride.
A lot of financial difficulties can be traced back to a few common root causes, according to McBride, and one of these is lack of emergency savings. For that reason you need to plan for the unexpected, whether for a dental bill or job loss.
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| How your savings can save you |
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