I recently spoke with a 30-year-old married father of two about his family’s finances. When I asked about their top financial goals, he didn’t hesitate. They wanted to save for a down payment on a home and pay off their student loans. They were also making a smart long-term decision by contributing 8% of his salary to a 401(k).
Those are all worthwhile goals.
But after reviewing the family’s monthly income, expenses, and savings, one concern became obvious. They had very little set aside for emergencies. A major car repair, an unexpected medical bill, or a temporary job loss could wipe out their savings and force them to abandon the very goals they were working so hard to achieve.
Unfortunately, their situation isn’t unique.
Keep reading if you’re interested in learning more about developing and assessing your emergency savings plan.
Continue reading “The one savings goal that protects every other goal”