How an Emergency Savings Calculator can Help your Finances

With the kids in school, your work and other responsibilities that you have to deal with as the breadwinner of a family, saving for emergencies is the last thing on your mind. Fortunately, an emergency savings calculator can help.

How an Emergency Savings Calculator can Help your Finances

How do you plan for an emergency fund at all? Fortunately an emergency savings calculator can help you decide. Remember, planning ahead with an emergency savings calculator can help you prepare for unforeseen disasters like unemployment, property damage, auto repairs, medical emergencies, legal issues and other problems that may come your way. The better you know how to save up for such dilemmas, the better will you be able to meet your family’s needs. This way, you will never have to worry about how you will handle these situations at the last minute. Lets see how you can use a emergency savings calculator to do just that.

Medical Emergencies

You can use a emergency savings calculator to figure out the amount of money that you will need for medical emergencies especially if you are not insured. You do not want to come back from a vacation, get in an accident and realize that you have spent all of your savings on a hotel room in the Bahamas. Needless to say its best that you take out the emergency savings calculator now before you regret it later.

In general, you should commit to putting aside a certain amount of money for a separate medical fund each time that you get paid. Two percent of your salary is enough especially if you have a family to take care off. You can input the amount that you intend to save on your emergency savings calculator on a monthly basis. The emergency savings calculator will then calculate the amount of funds that are designated for your medical savings which in turn will help you determine your next course of action. Do You Need an Emergency Savings Calculator?

Legal Expenses

The best thing about a emergency savings calculator is that it is designed to help users save up for different situations in one place. For instance, your emergency savings calculator also makes it possible for you to record the progress of a set of funds for legal expenses.

Even a fender bender can turn into a case of “who dun it?” if the driver who crashed into you refuses to own up.

An officer might tell to take the case to court if it isn’t certain who is to blame. You won’t know whether you have the right to sue for damages until the trial is over. However, if you have used your to save funds for legal emergencies, you are good to go.

 

Auto Repair

The family car is apt to have a few clunky parts with the carpools, picnics and road trips it goes through. You do not want it breaking down on you in the middle of the highway especially when you do not have the cash too have it repaired.

Your emergency savings calculator will seem like your best friend in times like these. In other words, make sure that you set aside a separate emergency funds for auto repairs and record it in your emergency savings calculator. This will help you keep account of the amount of funds you have and might need for major emergency repairs as well.

Monthly Living expenses

Your emergency savings calculator will also help you take stock of your monthly living expenses. This may serve you well in the long run especially if you have a lot of family members that depend on you. For example you can include your home rent, food, clothing, phone bill, gas, and any other expenses that you have to pay for on your emergency savings calculator. Your emergency savings calculator will provide you with a total of your expenses which you can use to start saving up for.

Rate of Return

Sometimes, you have to invest in something else to make a little more cash than you are at the moment and help your family’s financial situation. For instance, you may use a emergency savings calculator to calculate your rate of return if you have invested in a property. Just make sure that you remember that the ROI may not be constant. In addition you should also keep in mind that investments that pay off a larger ROI are more at risk than those that don’t. This is especially true for investments that you expect to last for the long term. Keep these factors in mind as you use your emergency savings calculator.

Total Amount Saved every Month

This is the best part about using a emergency savings calculator. It rewards you with an accurate estimate of your savings that you are left with at the end of the month after cutting off your expenses. You can choose to include the leftover cash in your emergency fund.

 

Property Damage

Storm season brings with it a slew of property damage cases. Your emergency savings calculator can ensure that your finances are able to handle any repairs the next time a tree branch crashes through your roof.

Unemployment

An emergency fund can help you sustain yourself and your family if you happen to leave your job in the future, at least, until you find a new job. Use your emergency savings calculator to create a separate fund for cases such as these. The fund can include the amount of cash that you generally need for monthly groceries, gas or anything else that you or your family might need.

 

So there you have it. Remember, it is always a better idea to save up for a rainy day than spend your salary like there is no tomorrow. Saving for expenses like clothing, medical, legal and repair emergencies will be an easier prospect for you with a emergency savings calculator. It will also come in handy if you are out of a job and need gas to reach a job interview. Your family will thank you for it.

 

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Blog June 17, 2013 admin No Comment(s)

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