Many parts of my clients' savings plans can be exciting. Saving for retirement, dream vacations, and goals to create momentum in their overall financial plan; however, their Emergency Funds should be boring. These funds are not for growing wealth, but insurance and risk mitigation against Murphy taking up residence. The funds should be easily accessible in either a high-yield savings account or money market fund, but separate from other savings to help avoid temptation to use it for non-emergencies. If the funds are used, one of the top priorities should be to replenish the money. Having an adequate emergency fund provides peace of mind and prevents them from going into debt when unexpected “life” arises. I’m a good referral for the couple who can pay the bills as long as nothing extra crops up. Connect us, and I’ll guide them through the process to plan for “extras” and so much more.
Tom Wallace - Wallace Financial Coaching