Emergency Fund...

Filed in archive Loans & Financing on October 11, 2007

Orem merchants say 800 N. project threatens business


OK, I am sure you're asking yourself right now, what a road construction project in Utah has to do with me.

My question to these merchants is: How prepared were these merchants for construction?

If you own a retail store, at some point in time you are going to have road construction in front of your business. Some construction can take two years so you have to be prepared for that to happen.

I frequently listen to the dave ramsey talk show. Dave Ramsey helps people out with finances and one of his big points is having an emergency fund. Not only should you have an emergency fund for your personal life, your business needs to have a emergency fund too. Dave Ramsey recommends six months of expenses as a good emergency and once again I agree with that number.

If you have a six month emergency fund and you loose 25% of your business for two years, you will survive the construction. If construction is going to last a year and you loose 50% of your business you are going to survive.

I've included links to the Dave Ramsey website and the article I did for my website.

Dave Ramsey

Keeping an Emergency Fund