Unexpected expenses sneak up on the best of us. Paying these unexpected expenses looks impossible when you are in debt and barely making the payments from month to month. If you`re like most, you have to reach for the credit card and then find yourself deeper in debt and farther behind.
What do you do about this?
The answer for paying unexpected expenses is an emergency savings account.
An emergency savings account is a sum of money set aside in an account that is only used for paying any unexpected expenses.
Unexpected expenses come in many varieties and range from a roof leak to a job layoff.
There is no hard and fast rule to determine how much you need in an emergency savings account, only rules of thumb.
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