What Destiny’s Child says (in their song, Bills, Bills, Bills):
“Can you pay my bills?
Can you pay my telephone bills?
Do you pay my automo‘ bills?”
What we can learn from pre-Jay Bey (& Co.):
Emergency Funds are what the two ex-members of DC had to rely on after being fired from the group, and your EF is for just that—bills, bills, bills in the event you experience a loss of income.
How you can use an emergency fund in your own life:
- While it may seem hard at first, having an emergency fund will keep you from putting emergencies on credit cards and being in a cycle of credit card debt for the rest of your life!
- Emergency funds also ensure your bills are paid on time which keeps your credit score in tact.
The Financial Lessons:
- Setting aside 3, 6, or 9 months of expenses (the amount depends on who you are and how many financial responsibilities you have such as a house, kids or other dependents) creates a nice cushion for the “just in case” in life.
- For those paying off credit card debt or student loans, try saving up $1000 for a small emergency fund while funneling extra cash to debt payments.
- When figuring out how to use an emergency fund, it is important to learn what is and isn’t an emergency. Breaking your leg is an emergency. Taco Tuesday is not.
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