When it comes to your finances, you should always be prepared for surprises. This is where an emergency fund comes into play. An emergency fund is a specific amount of cash that should be kept in a liquid savings account that is easily accessible, which you can draw from in case of unexpected expenses or situations not covered by your salary.
Mapping Out Your Monthly Expenses
Most financial advisors agree that the ideal amount to keep in an emergency fund is between three to six months of living expenses. Determining the right amount for your emergency fund is the first step you should consider. Calculating your monthly expenses can give you an idea of how much money you will need.
Starting to Build Your Emergency Fund
If you don’t have an emergency fund yet, start by setting some goals for how much you want to save. Aim for $1,000 at first, then work on accumulating one month’s expenses. It will take some time, but if you set your immediate goals to be small and achievable, you will have a better chance of accomplishing them.
Remember, Your Emergency Fund is for Emergencies Only
You want your emergency fund to be available at any time. But you don’t want to feel the urge to tap into that money unless it’s absolutely necessary. So, when you start to build your emergency savings, set some limits on when and how you will use those funds. For example, if your child breaks their arm and you need to cover your insurance deductible, that’s an emergency. On the other hand, if you come across a great deal on a pair of luxury shoes, it’s not.
Also remember that you should keep your emergency savings in an account that offers an excellent interest rate. The higher the annual yield, the faster your money will grow. By following these three steps, you will be on a good path to prepare for any situation that leads to unexpected financial loss.
Source: https://www.thebalancemoney.com/prepare-emergency-fund-1289901
}
.lwrp .lwrp-list-row-container{
display: flex;
justify-content: space-between;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: calc(12% – 20px);
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){
}
.lwrp .lwrp-list-item img{
max-width: 100%;
height: auto;
object-fit: cover;
aspect-ratio: 1 / 1;
}
.lwrp .lwrp-list-item.lwrp-empty-list-item{
background: initial !important;
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{
}
.lwrp .lwrp-title{
}.lwrp .lwrp-description{
}
.lwrp .lwrp-list-multi-container{
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: 100%;
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
};
}
Leave a Reply