Gregory Brinkman Quoted on Emergency Cash

Are you prepared for when one of life’s emergencies happens? Some tips from financial planner, Gregory Brinkman.

You’ve most likely heard time and again that it’s important to have a rainy day fund set up “simply in case” something unanticipated were to occur. However that rhetorical “rainy day” has essentially happened a few times over with the advent of the Coronavirus pandemic that had disastrous results on the economy at large as well as, on a private level, it resulting in job losses and decreases of income for many employees around the globe. Even if the monetary impacts due to the Coronavirus have not struck you much personally yet, here’s some tips on how to be prepared in case it does – plus just how to set up a fund for unexpected future emergency situations.

Why Do I Need An Emergency Fund?

Part of being prepared for any kind of emergency, big or small, is having a cache of emergency funds available in any sort of situation. When you can not rely on accessing your funds online, you’ll require some cash on-hand to acquire food, medicine, fuel or other requirements.

“Whether it’s due to Mother Nature or other catastrophes outside of your direct control, you continually need to be prepared by having some emergency cash money accessible,” stated Gregory Brinkman, President of GF Brinkman Financial of Tulsa, Oklahoma. “Financial institutions and automated teller machines might not be up and functioning for days after a disastrous storm, for instance. I advise my clients have at least 7 to tendays’ well worth of spending money, simply in case.”

How Much Should I Save For An Emergency Fund?

To choose how much to save for an emergency fund, you’ll need to consider a number of factors:

• How much will I require for a severe devastating occasion?
• How much can I afford to save?

“It’s a good idea to have some physical cash money at home for the worst emergencies, such as national disasters, when financial institutions may be unable to operate,” says Brinkman.

The rule-of-thumb I tell all my clients is to have $1,000 to $2,000 in cash — smaller bills are more desirable — in case banking operations are shut down due to a catastrophe or national emergency.

Gregory Brinkman, President of GF Brinkman FInancial, Tulsa, Oklahoma

Aim To Have $2,000 On-Hand

“The rule-of-thumb I tell all my clients is to have $1,000 to $2,000 in cash — smaller bills are more desirable — in case banking operations are shut down due to a catastrophe or national emergency,” said Gregory Brinkman.

Despite this guidance and what you may hear from other sources, there is no precise amount you ought have tucked away in your emergency money cache. The answer for how much you should save for an emergency situation is that you should do what seems right to you. No matter the amount, an emergency fund is completely necessary — so make it a priority to save one up.

Even if you cannot afford to hold back much from month to month, it is better to save something rather than nothing at all. So if you can only afford to set aside $500 for an emergency fund, that is still better than not saving anything at all.

Read my 10 Ways To Save Money 💵 @BuzzFeed #HowToSave #HowToSaveMoney #Savings #SavingMoney #FinancialPlanning #SavingIdeas https://t.co/dpjE3WyQY2

— Gregory Brinkman (@BrinkmanGregory) September 28, 2021

What Do Your Basic, Temporary Necessities Cost?

Take into account that in a state of emergency, inflation will rise, demand for basic commodities will increase and price gouging can often occur. With those serious considerations in mind, on top of your regular emergency money, you should prepare to have enough to cover some basic costs in a disaster. Drinking water, gasoline, a portable solar generator, rechargeabe battery-powered lights, and a radio (hand-crankable or solar-powered are best).

Keep Some Emergency Supplies On-Hand, Too

While apocalypse preppers have long been joked-about, running out of basic supplies is no laughing matter. While we think that prepping can be a never-ending, bottomless endeavor, some degree of disaster readiness is a very good idea.

An emergency kit could include water, batteries and basic tools, a first aid kit, medication, a set of durable clothing for each person, dried and canned foods, portable rechargeable lights, a detailed printed map, and even a supply of M95 facemasks.

Two Types of Emergency Funds

Unlike a regular emergency fund — which should be used to cover things like unemployment, medical or car emergencies, emergency home repairs or bereavement-related expenses — a national emergency fund should be reserved for catastrophes in which you cannot use credit cards. Regular emergency savings should be stashed in some kind of savings, money market or certificate of deposit account. Your savings for a national emergency fund should be kept mostly in cash.

Start Saving!

If you do not have emergency funds, it is important to start saving some up right away. Make it a priority, because having such funds on-hand can ensure that when the road gets bumpy, you can get past temporary issues without suffering, and without incurring greater losses than you might otherwise endure in the long run.