Emergency Funds — The Key to Weathering Financial Storms

Over the last few days, we have watched with horror as Hurricane Sandy has roared up the East Coast of the United States. We have seen the devastation that a storm can cause, both in a physical sense and in an emotional one. Some of America’s largest cities have been severely damaged. The power of nature is truly an awesome sight to behold.

As with any big storm, scores of people decided either to ignore the evacuation warnings or had no choice but to ride the storm out in their homes. Now, there are tens of thousands of people trapped. There are millions of people without electricity. Unless they prepared properly, many of those people are without food or water. Federal, state, and local governments are scrambling to provide these people with the aid that they need in order to survive the next few days.  Read More…

This article has 8 Comments

  1. Leo Ryerson

    That sandy storm really has woken a lot of people on the need for emergency savings. When i see those images of NY and how those poor people are dumpster diving for food when just 24 hours they were living it up with high-priced meals is truly surreal.

  2. Travon Fairfield

    We all have different lifestyle levels and so how much we save depends on the person. Some may live frugally and only need to save $1,000 while others, like me, may need to save at least $50,000 so there isn’t too much of a traumatic change in the event of a disaster.

  3. Camille

    Hey, i can always ask my parents if i’m stuck! So i’m good 🙂

  4. Finnegan

    HEY! I began my Emergency Fund back in January and its going great! I don’t plan on using it any time soon but i am proud that using Cost Dollar Averaging i have been able to save so much more.

  5. Finley Briley

    One wouldnt need such a silly fund if they just did proper savings in the first place. If one can’t save through tiny amounts each month then its highly doubtful they will save for the unknown.

  6. Dion Vinner

    Where to begin? It isn’t so much about having a fund as it is having the mental attitude of learning to manage ones money in proper ways.

    How many of us know someone that ends up sticking their hands in the cookie jar when they shouldnt?

  7. Sky C

    Informative. I am horrible at doing this kind of thing but i have to learn to take this serious because i have been in situations where a healthy emergency fund would have helped me considerably.

    Thanks for the post.

  8. Olley Nicholes

    The smart approach would be to have a high-interest registered savings account such as a TFSA. Since Emergency Funds are just that: Emergency then you don’t really need access to the money so having a TFSA or GIC (long-term) is a great way to earn quality interest.

    And having it in a registered account makes it less likely for you to be enticed to take it out since it penalizes you if you do (usually lose the interest that you had earned).

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