Building an Emergency Fund

An Emergency Fund can be one of the most important financial tools that many of us, unfortunately, lack. Saving is one of the most challenging things to do in our financial lives. Today, I will talk about a few tips to help you build an emergency fund so your next unexpected expense won’t wipe you out completely.

Set A Goal

Whether your goal is to save 500 dollars or a year’s worth of income in case of an emergency, the most important thing to do is to set your goal and achieve it.

Automatically Save a Percent of Income

If your employer uses direct deposit, you can automatically assign a percentage of your paycheck to set aside each time you get paid. The money you don’t see is money you don’t touch. To allow your savings to continue to grow passively consider opening a high yield savings account so that the bank pays you a percentage of the amount you have saved back into the account.

Downsize Your Subscription List

Make a list of your Subscriptions; if you’re like me, it’s probably too many. If you haven’t used the service within the last three months, cancel the Subscription and deposit that money instead. 5 to 10 dollars here and there may not sound like much, but it can add up over several subscriptions.

Establishing an Emergency Fund is a freeing and important experience. Please follow the links below for additional reading.

https://www.thebalance.com/is-your-emergency-fund-too-big-4142617

https://www.nerdwallet.com/article/banking/savings/emergency-fund-why-it-matters