A lot has happened in our area since Hurricane Helene visited. It’s been 10 days, and the mountains still haven’t made a dent in the recovery. Many people have lost everything.
My area has been fortunate. Most of us have had power back for 5 or 6 days, and we now have running water again. For the most part, things are returning to normal. My kids have one more day off, and then they’ll return to school on a delayed schedule as our county works on recovery, especially in the areas closer to the mountains where the damage was more severe.
While many are still a long way from recovery and returning to normal, even some people in my area are facing financial hardships.
It costs money to feed your family when you don’t have power. It costs money to replace everything that was lost in your refrigerator and freezer. Not every family has renters’ insurance to help with this. Our food banks were already running low before the storm, and now so many are in need of help.
This is the danger of living paycheck to paycheck. Emergencies happen more often when there’s little room in your finances to cover unexpected costs or plan for extras.
An emergency savings account is your first line of defense. This fund will cover unexpected costs, like extra doctor’s appointments, cold medicine when the flu hits, or lost wages. It can even help if there’s an error in your paycheck (you can replace what’s missing when you’re reimbursed).
How much stress could you avoid if these expenses were covered?
Having an emergency fund gives you security.
A basic emergency fund of $1,000 can cover a lot. If that seems out of reach, start with $500, then keep going. Eventually, aim to cover 3-6 months of expenses. Imagine the peace of mind that would bring—it would feel almost bulletproof.
We’re aiming for security, so this fund is strictly for emergencies. It’s not for “I forgot my lunch money” or “I overspent on Amazon and now I need gas money.” You need to get control of those areas first.
This is your security. This is your stability.
Trust me, your stress level will decrease once you know you’ve got your own back.
Take the first $25 you can find and open a savings account at your bank. If you can, open a money market account, as it will earn more interest. Then, start adding extra pennies like you’re Scrooge McDuck.
One of the greatest truths I’ve heard is, “It’s always going to rain, so have an umbrella.” Emergencies will happen. If we plan for them, they’ll become little more than an inconvenience.
Here are some budget sheets to get started with.