Hello and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. In this episode I'll discuss the importance of an emergency

fund and how much you really need as a savings goal right now.

We all know we should have some emergency funds to help us through those unforeseen emergencies

in life.

You know what I'm talking about.

Your car won't start, your computer computer crashes you get the flu your water

heater quits working or what about the granddaddy financial emergency of

them all you lose your job or business income.

Many people don't think about the financial what-ifs in life.

They happily trot along until some large expense or crisis really throws them.

That's when you want a nice soft cash cushion to land on.

The alternative for many is to pull out a credit card and make charges that they really can't afford.

Emergency funds should be tapped only for real emergencies.

Even though it may feel like it at times,

taking a vacation is not an emergency.

Buying presents, extra clothes, computer games, and the like. an emergency

are not emergencies either.

The purpose of emergency funds is to keep you healthy and safe

during times of unemployment or other unexpected crisis situations.

The solution to dealing responsibly with unplanned expenses

is to save up an adequate cash reserve fund.

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