United Way Explains Importance of Emergency Savings

ZANESVILLE, Ohio – In the midst of the government shut down, federal employees are seeing a halt in their income.

In situations like this, it’s important to have an emergency savings fund. According to CNBC, an estimated 55 million Americans have no emergency savings. The fund is money set aside for true unexpected expenses such as loss or suspension in a job, home or car repairs, or even medical expenses.

“It doesn’t take much to have a dead battery, or a leak in the roof, or a broken pipe. And that could throw you and your household into financial crisis. So, it’s really important for folks to get an emergency fund, and to have established cash set aside to cover these true emergencies,” said Executive Director of United Way for Muskingum, Perry, and Morgan Counties, Meg Deedrick.

Deedrick also said it’s ideal for people to have a minimum of three months’ worth of savings set aside to start an emergency savings fund. Some ways to begin the fund are using an upcoming tax refund or cutting expenses such as cable or gym memberships.

“The one common denominator of all the advice is get started today because it’s when not if these things are going to come up. Your car is eventually going to break down, something is going to go wrong with your house, or your living area. You’re going to need to access this money so that you don’t accumulate more debt,” she said.

United Way is offering free tax preparation clinics; for more information on that call 211. And United Way recommends on getting started on the emergency funds as soon as possible if you don’t have one now.