September is National Preparedness Month. As this is the first day of preparedness month, we will start at the beginning of your preparedness efforts with the most important item you should have--an emergency fund. Everyone--rich, poor, middle income--should have an emergency fund. Even a small emergency fund to get you started is better than nothing as many emergencies can be fixed with a bit of cash. Your goal should be to do everything you can, as quickly as you can, to get some money to put aside in the following funds:
- cash in your pocket (a few hundred dollars)
- cash at home (a few thousand dollars)
- cash in the bank (enough to cover six to twelve months of household bills)
With these three pots of money you can: evacuate ahead of an approaching hurricane, spring for an unplanned dinner, cover the bills for quite a while if you find yourself unemployed or with an extended illness, replace a busted hot water tank, pay for needed car repairs, etc. Getting these funds together should be a top priority.
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