Blog / Do You Have an Emergency Fund in Place?

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Emergency fund in a jar

When it comes to money, a lot of us have budgets in place and compulsively check our bank accounts to make sure we have what we need to cover our monthly expenses.

But what if the unexpected happened?

According to a 2017 article from, more than 57 million Americans have zero dollars saved for emergencies. That means if any of them suffered a sudden financial emergency, they'd immediately enter panic mode.

In order to avoid that in your own life, you seriously need to work on an emergency fund of at least $500 (more than $1000 would be spectacular). Here's why and how you can achieve this level of confidence in your finances!

Working on Confidence

Most people with comfortable jobs (even those paying more than $100,000) simply aren't prepared to pay for something unexpected. They can afford all their regular bills, their day-to-day expenses -- but that leads to a level of false confidence that can be dangerous when disaster strikes.

A sudden life event such as the loss of a job, a medical emergency, or a car accident could drive even high earners into immediate debt.

So if you don't know how you could handle such an issue, you shouldn't allow yourself to sink into complacency. Instead, be vigilant, and start working on building your emergency fund.

Saving is Key

If your income provides you with enough flexibility to allocate money where it's needed, there's a solid chance you can figure out how to put money into savings after each paycheck.

For most Americans, 50-60 percent of their earnings go directly into the major bills -- rent, car payments, etc. The rest is divided between food, insurance, gas, and extras. Even if at the end of the month, you only have about 5-10 percent of your total monthly earnings left over, that is a healthy amount to pour into a savings account.

Over a few months, that money will undoubtedly grow. And if you're able to pay off debts through your budget using the popular snowball method we've discussed in the past, you'll be able to allocate more money to your savings over time.

How to Get Immediate Help

If you've just started working on savings for your emergency fund and the worst occurs, you have options. First, determine exactly how much of your current savings or extra money you can use to throw at the problem.

Afterward, you can look toward financial help in other areas. For instance, a personal loan of up to $1300 from a lender like Atlas Credit in cities like Austin, Waco, Fort Worth, or Longview, Texas can help! By applying for a personal loan online or in person, you can get a quick and easy supplement to your monthly income that will allow you to make it through even the most trying of times.

For more information on how to survive financial emergencies and prepare for the future, read more in the Atlas Credit blog posted each week!

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