Your Emergency Fund Made Easy

One of the most important things you and your family can do is to build an “emergency fund” for unexpected situations.

Typically you’ll need to have enough money to pay for all of the necessities to sustain you and your family for at least 3 to 6 months. For example, money for food, gas, utilities, minimum debt payments and other bills.

I understand how difficult it can be to sock away that much money. So today I’m going to show you how to have the next best option to having cash in the bank…

Opening up a Line of Credit at your local bank or credit union.

You see, Lines of Credit are simple interest revolving loans. What this means is that you will have cash available to you in times of need, but will only pay interest on what you use.

So let’s say you go to the bank and qualify for a $7,000 Line of Credit. This money will be available to you almost like a savings account, but you will pay interest on what you withdraw.

Most lines are simple to qualify for if you have a decent credit score and work history. There may be a yearly fee to have the Line of Credit, but it’s only a drop in the bucket, considering the peace of mind it brings you.

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Pre-Qualification vs. Pre-Approved
Money 101 for High School Students

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