According to Bankrate’s Financial Security Index Survey, 34 percent of the population will experience a major unexpected expense and only 39 percent of Americans are prepared to cover a $1,000 emergency expenditure.
The study should be a wake-up call for most Americans to start saving as early as possible. Unplanned expenses can pop up at anytime and you need be prepared to cover them. Once you pay off debt, make sure you start allocating your monthly pay check to an emergency fund.
The cost of living can make it difficult for clients living in Hawaii to increase their savings account, but it’s necessary. Try to avoid adding on debt to cover an unexpected medical bill or broken water heater.
Saving three to six months of your take home pay check should be your target amount. But, if you can make it eight to twelve months that would be ideal.
Whether you can save $100 or $1,000 a month, start adding money to your saving account each month. Medical expenses, a job loss, home repairs, car repairs, insurance premiums and tax adjustments are just a few unplanned expenses that you may experience.
Disability insurance can help clients who are unable to return to work, but most policies have a 90 day elimination period. Hence, you need to start adding to the emergency fund today!
Call Sage Capone at 808-753-1868 to review your plan and make sure that your family is protected!