There is one thing I can guarantee you – no matter where you live, it is going to rain. Maybe just one day a year, but it will rain. When it rains on you, are you prepared with an umbrella or are you going to get soaked?
The same way it will rain on you literally at some point this year, it will also rain on you figuratively. Something unexpected is going to happen. An emergency is going to happen. Life is going to happen. Do you have an umbrella or are you going to get soaked?
Right now, many people in this country are wishing they had an umbrella – even a small one. It is raining on them right now. They are not getting paid because of a situation that they couldn’t control. Some were prepared, but many were not. Some will be able to continue to pay their bills and put food on the table, but many will not. This is just an example of what happens everyday in this country and in our lives. Life happens – some things we know might happen and some things we have no clue are going to happen. This is why an emergency fund (umbrella) is so important. If really should be the number one priority in your finances.
So how big should your umbrella be in order to not get soaked the next time it rains. Ideally, you want to have one year of expenses set aside. But start somewhere, even $50. And just keep building it. You want to get $1000 to $1500 as soon as you can. This way you can handle a sprinkle if it comes through. Next, set aside 3-6 months of expenses. This will cover a regular rainstorm. And then save up to one year of expenses. This size umbrella will cover any storm that comes your way – sprinkle to hurricane.
It is going to rain this year. Are you ready? Today is the day to start. Whether you are starting at the bottom, or building what you have into a bigger umbrella, today is the day. As people find out each and every day, you never know when a storm is coming. The best thing you can do is be prepared. Having an umbrella can be the difference in the rain being just a little nuisance and it being a drowning storm.
Listen to Debbi’s podcast on this subject and so much more.