America Saves Week is recognized February 19-26, 2012. As part of this, on the website they give ideas of things to do throughout the month to get your financial life in order.

Do you have an Emergency Fund? An emergency fund is money you have put away for unexpected expenses that may come up such as medical expenses, job loss, car accidents, etc. It is suggested to start with $500 to $1,000. Some people suggest to have at least 6 months worth of monthly expenses saved and up to 1 or 2 years worth. With the current economic conditions it is taking people longer to find a job so they have extended the recommended size of emergency fund.

When you have money in an emergency fund for unexpected expenses, it is less likely you will need to put the expenses on your credit card or need to look for other funds.

I realize it may be difficult to save this amount of money. But as with other savings, if you can find a little extra in your budget each week or month and put that away. Over time it will grow into an emergency fund. Any amount you can save is better than saving none.

Nancy Kvamme

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