This story in The Atlantic has me thinking all sorts of things about what it means to be financially secure in the U.S. today.
The study featured here presents a shocking figure that 47% of Americans could not cover a $400 emergency without borrowing the money or selling off possessions. This is serious. What would you do? I suspect that most readers of this blog are committed to saving and investing and building wealth. To me, having money I can access either for emergencies or to buy income-producing investments, is key to sleeping well and feeling that I can take care of myself and my family no matter what curve balls life throws our way.
Can a mere $400 change your life? It isn’t the actual money that transforms you, but making the daily sacrifices that helps you quietly accumulate $400 and beyond is what really creates lasting security. Once you get started and then watch the fund increase in value, it builds your determination to keep adding to it and securing your sense of well-being.
Frankly, $400 is not enough of an emergency fund. Ideally, you save up enough to support you and your family for a certain number of weeks or months. While in the past, we were told three to six months was a sufficient number, these days it may be much higher.
If you don’t have an emergency fund set up, this study and article should kickstart your desire to get going. Just having $400 will set you apart from nearly half of the adult population. Imagine how well you could sleep having $5,000 or $10,000 for whatever life brings you next.
p.s. Check out the new NDQ Guide: 500 Tips the guide that will give you actionable steps to jump start your savings and investing immediately.
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