Emergency Fund Accounts – Personal Finance Basics

11 Jan

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As a economic consultant and I have coached a lot men and women as to why emergency funds are critical. In an earlier post you discovered vital personal finance basics with regards to creating an emergency fund like budgeting, aim setting and automation. Right now I’ll talk about a couple of fast ideas to support you choose where to invest your emergency fund.

Convenience – If you are like lots of individuals, you want to make saving into an emergency fund as fluent and basic as you can. Coaching personal finance basics has also shown me that if it’s not effortless, possibilities are it won’t get done. You probably have a checking account. If so, you possibly have a financial savings account in place also, if not you could open 1 with your bank on the Web or at your branch. I advise using this account to park your emergency funds. Possibilities are the interest rates are not wonderful, but it is an a simple account you almost certainly have, or you could set up in a jiffy.

High Interest Financial savings – You shouldn’t be concerned too significantly about the interest rate you get with your emergency fund as it is regarded a brief-phrase investment. A personal finance fundamentals way of considering is that you’ll possibly use the fund within the next 5 to seven years, it is brief-phrase. ING is avery well-known savings vehicle, as is Pc in Canada. There are a lot of high interest cost savings accounts available to generate on-line, just be cautious of their fees, terms and situations and legitimacy. Funds marketplace funds is one other choice, and can even supply larger interest than financial savings accounts, but they aren’t assured. I have personally used ING for my emergency fund and consider its outstanding.

Liquidity – How rapid can I get my funds? An additional critical aspect you want to feel about is how accessible are your emergency funds. The straightforward rule with this is that it should be obtainable by much less than 5 days at the extremely most. You need to attempt to get a fund that could spend out your money inside 24 hours of when you need it. The personal finance basics query to ask yourself with this when deciding on an account is “Can I get the money when I need to have it?”

I hope these personal finance basics concerning comfort, high interest savings and liquidity will help you make your emergency find into a reality. Verify our resource link for no cost spending budget spreadsheets and other monetary calculators to give you the head start you may require. We go more in depth in our e-book as nicely. The greatest tip I can give is to get it began. Even if you only got a % rate of return, you will nevertheless have funds tucked away for those unexpected expenses that you wouldn’t have otherwise.


25 Responses to “Emergency Fund Accounts – Personal Finance Basics”

  1. Catharine February 19, 2013 at 9:09 am #

    I am in the military and im wondering what i can do with about $10,000 of deployment money. I want to invest it somehow but i dont know the first thing about investing. I would rather have my money work for me then just sit in a savings account. Thanks for any help.

  2. Alden February 21, 2013 at 10:01 am #

    I am 33 years old. I make too much money to have an IRA. I have about $60k in a savings account. I don’t know much about investing. What would be good for me?

  3. Grady March 5, 2013 at 12:35 pm #

    What kinds of funds should I choose? When is the time to pay taxes for the profit?

  4. Maryalice March 6, 2013 at 1:25 am #

    savings account how would you invest it thanks

  5. Era May 18, 2013 at 1:56 am #

    it’s been a while since i’ve taken personal finance. i wanna move out of my parents house in a few years, so i’m trying to estimate what it will cost me per month. what factors do i need to think about? obviously rent, utilities, gas money, insurance, groceries, personal expenses…

    i guess what i really wanna know is how much it typically costs a single person, to get a cheap apartment and live on their own each month?
    and i swear, if you spam my question with your financial scams, you will be sorry.

  6. Erin May 19, 2013 at 8:23 am #

    As we all know tax rebates are coming, I am looking to start investing. I would like to get advice on the best types of accounts stocks, and mutual funds i can invest in on a monthly basis to exponentially grow my money. Something like a a good cd or savings account with pretty high intrest rates or even treasury bonds

  7. Bryce June 4, 2013 at 9:34 pm #

    I have $3000 that I don’t plan on touching for quite awhile. I know CD rates aren’t so hot right now, so where should I invest? The stock market is a little over my head right now, so I’d like to start investing with something more secure…. online would be best, too since I will be back and forth between Ohio and Georgia for awhile.

  8. Marnie June 6, 2013 at 7:40 pm #

    I have a 401 K, I own my home, and I have about $17,000 sitting in a money market account. I feel like I could earn a higher interest rate somewhere else and would like to invest $10,000. Any suggestions??

  9. Lauralee June 8, 2013 at 4:33 am #

    I’m really hoping that someone could help us. We’re both 30 and are starting to worry about our future.
    We’ve never been in debt but we haven’t thought about saving money for our future. I’m starting to worry. The cost of living is always going up, I feel depressed after reading retirement planning books it just seems impossible to retire comfortably. I don’t know how we will be able to save that much money, and we both work too.

    As I stated earlier, we don’t have debt, and while we’re generally not spendthrifts, I’m not sure how we will ever accrue enough money to retire comfortably. I make 45k in accounting and he makes 60k in programming right now.

    Our situation: no debt, we rent an apartment if we ever decide to buy a house, we have decided our max limit will be 150k,,we get used cars I would rather have new but used cars are cheaper. We don’t buy a lot of useless things, we try to stick to basic needs and basic wants.

    It seems like you have to make 100k each to retire well. I don’t know if I will ever make that as an accountant. Even when we’re doing everything that we can to live below our means, I just don’t know if we will ever make it. I don’t want to have to work when I’m 80. I’m stressed out just thinking about how much money we will need for retirement.

  10. Irma June 9, 2013 at 9:26 am #

    I am 25 years old and would like to have financial advice. I want to know how can I save my money in a responsible way. My expenses are 3 college loans, health insurance and hospital bills. My 3 college loans are (1) 104.41 per month, the one is 104.68 per month and I am paying 270.00 once every three months. My health insurance is 200.00 a month and my hospital bills are one is a total of 204.20 and the one is a total of 363.00. I have been putting payments down on my hospital bills but I feel like I am getting nowhere. Even though they are decreasing in amount. Once they are paid off, how can I set money aside for future hospital bills. I am looking through every possible way and looking for suggestions. My net take home pay is 550.00. I only have to pay 30.00 once a week of gas to put in my car. I pack my lunches for work so the cost of lunches is around 30.00 a week as well.
    Any advice???? Suggestions are welcome. One more thing I am never late on a bill payment so my bills are paid up to date. With health insurance being so high, I don’t know if I want to elect for a high deductible since it’s cheaper. I am one of those people that can be fine for so many months and then all of a sudden be rush to the ER at least 4 times within 3 months. I am so confuse…Please help?????
    Thank you guys. I wish can work like that but I need my time off. I used to work a part time job and my bosses wouldn’t even give me a pay raise and they only gave me one day off. I understand that our economy is going through hard times. I don’t want to borrow money because that just create more debt for me. I do have less expenses because I still live with my parents so that is a plus. As for me getting a job in my career field, that won’t happen because of an eye problem that I have. I just keep on finding jobs. Right now I am happy with my full-time job, weekends off and paid holidays so it’s good.

    I watch the dugger family and I took their advice, don’t buy the stuff that you can’t afford. But buy what you need to survive and leave the extras out. I know they make more money but I don’t have kids so if I go deep into debt I have myself to blame.

    More suggestions are welcome :)…. The more I get the more I learn… Thank you.

  11. Alayna June 12, 2013 at 3:18 am #

    I’m 23 years old. I have an “okay” job. Not wealthy but not living from paycheck to paycheck either. How should I go about puttng a little money away each month so I can end up with a decent amount for a vacation in a couple years and retirement around maybe 50 years of age.

    Thank you in advance! 🙂

  12. Tresa June 26, 2013 at 7:40 am #

    I’m currently saving in my 401k here at work, and by the time I retire in 35 years, I should have a sizable nestegg. I know all the cons to pulling out of that early, and want to avoid them.

    I’d like to start saving additionally for retirement, so I’d have the potential to retire early, but with no major drawbacks to pull on this money.

    What type of accounts should I get?

  13. Elvis July 1, 2013 at 2:24 am #

    I recently got a chunk of cash, $300,000 to be precise. How do I invest this amount? Here are some other points:

    1. I have set aside $20,000 to spend on myself, take a vacation, etc.

    2. What percentage do I invest in the bank, as it is supposed to be the safest?

    3. How much do I invest in Mutual Funds that have a good reputation?

    4. Is it wise to open a recurring deposit account? If so, how much should I allocate for that?

    5. Some of my friends told me that investing in gold / silver is always safe. Is that true and if yes, how much should I invest in guilt edged securities?

    6. I don’t need any part of this money to meet daily expenses. They are taken care of by other finances, so this is just for investment purposes.

    7. Charity is not something I would like to do with this money at this point of time. Maybe later, but definitely not now.

    8. Any other areas where I can invest a certain percentage?

    Thanks a lot!

  14. Haywood July 2, 2013 at 1:39 pm #

    Here’s my situation in a nutshell. I’ve worked every lousy job on the planet, put myself through college, and have managed to save some money, which is sitting in bank account at a measely rate of 4.5%. Inflation keeps biting at it. *Bite! Bite!*

    I’m very risk-adverse, but realize that I MUST invest my money. I don’t want to invest in real estate for obvious reasons.

    What do you guys suggest I do? 1) Invest in bonds @ 5%, 2) keep my money in CDs @ 4.5%, 3) buy an overpriced home, or 4) take my chances and risk it in the stock market???

  15. Drema July 3, 2013 at 4:57 am #

    Im 19 years old and have been working at Chrysler for the past 2 years and saved up 10000 dollars. Im good at saving money and i currently have my money in a money market account and am still deposting more. I want some expert professional help. What do you guys recommend that i do with my money. I just want to see what other people are doing so then maybe i can accumulate all the information and choose what would be best for me.

  16. Azalee July 12, 2013 at 9:56 am #

    I am 20 yr old male attending college for accounting. I pay my way through college and have about $5000 in a savings account. However, i want to take some money out of my account and invest it in something. I was thinking about putting it into a IRA or a CD? What about stocks, bonds, or mutual funds at my age? I am confused on how i should start right now. Is it too young for me to even think about investing? I want to start off young so when i am older i have money saved up already. Any advice or opinions would be greatly appreciated. Thanks

  17. Cherilyn July 12, 2013 at 6:32 pm #

    i have recently come into some money ,so i spent a bit on myself (bought a Harley & nice clothes) . i always wanted a Harley & believe it to be also an investment ,because they hold there value well(resale value).I have a large amount just sitting in an account that has no fee,s or charges & pays interest daily,however has no back up support from the bank ,& can only be accessd online ….if the old saying that money makes money,,, where/wot are some good investment ideas?????? i eventualy am hoping to buy property with minimal borrowing

  18. Vincent July 22, 2013 at 7:38 pm #

    I am 25 years old and want to start investing money into stocks, bonds, and mutual funds. I recently opened an account with etrade, a savings account with 5% rate of return. I think this is a good start, but I would like to learn more on how investing is done. Is etrade a good place to invest with? Where can I learn about investments, websites? books?

  19. Janelle July 24, 2013 at 4:02 am #

    What degree should I get, and what exactly would I be in charge of as a personal finance manager? Where would I get a job?

  20. Darnell August 3, 2013 at 11:19 am #

    And what exactly would it be called and how do I go about doing it? I want to be able to teach personal Finance. Home Budgeting, basic estate planning and basic investing. What is this and do I need a degree to do it? If so, in what?

    Please help! Managing money is my only talent, and I have a passion for teaching it to others. How can I translate this into a career for myself?
    P.S. I’m a stay-at-home mom, we own or own home, and are raising 4 kids with no government assistance on my husband’s $34,000 a year. I’ve been told I have a flair for managing money. ;p

  21. Georgette August 9, 2013 at 4:05 am #

    I mean how did personal finance started? who created it?
    Sorry if I wasn’t clear. What I mean is how did all the personal finance started?
    For example, we know the stock markets “History of stock market trading in the United States can be traced back to over 200 years ago. Historically, The colonial government decided to finance the war by selling bonds, government notes promising to pay out at profit at a later date. Around the same time private banks began to raise money by issuing stocks, or shares of the company to raise their own money. ”

  22. Columbus August 25, 2013 at 1:06 pm #

    I have to select courses for next semester and I saw personal finance as an option. Does it require a lot of difficult math and confusing terms? Thanks!

  23. Bobby August 25, 2013 at 11:20 pm #

    I am looking for a personal finance program for budgeting and tracking investments but everything I look into seems to track everything monthly. I get paid bi-monthly and want to budget bi-monthly. Anyone have any recommendations?

  24. Thomasena September 3, 2013 at 9:57 am #

    Personal finance topics such as: Budgeting, paying bills, personal taxes, personal credit, learning about basic stocks, insurance, and various other topics pertaining to keeping one’s fiances properly managed.

    Business topics such as: Business budgeting, supplies, marketing, workers, taxes, business laws, accounting, property, etc.
    I’m 18 and currently in college. I’m studying want to start studying those two topics (personal fiancees and business) to both improve my quality of life and maybe even go into business later on down the road.

  25. Issac September 10, 2013 at 9:04 am #

    I wonder how other people feel about having a personal finance consultant to manage their wealth. How many have the service? How long they stay with the same consultant? Are people satisified with their consultant? Thank you.

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