Build an Emergency Fund

 

You have probably heard others talk about “saving money for a rainy day.” Eventually, you will have an unexpected expense such as a car breaking down, a trip to the emergency room, or losing your job. By saving at least three to six months in an emergency fund that you only use for unplanned expenses will keep you from going into debt and stressing being able to pay your other monthly bills.

If you haven’t started an emergency fund yet, you can follow these 5 steps to increase your savings. Unless you have a pile of cash sitting somewhere, you will need a few weeks or months to build a sufficient reserve. Start small by saving $500, then $1000, and ultimately up to 6 months of living expenses.

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