SET UP AN EMERGENCY FUND

All the money experts shove this piece of advice down your throat and it’s such a good piece of advice, but are you actually following it? Do you have some money set aside for emergencies?

It is recommended to have at least 6 months of expenses saved for an emergency. This is so important that you should focus on this before focusing on debt repayment. Emergency can strike at any moment and there will be NO notice when it happens.

Six months worth of expenses mean the bare minimum that you need to survive. This means cutting out all unnecessary bills, entertainment and activities.

Finding the Money to Save

⬜ Start slowly. Start with $20 a month or a paycheck just to get into the habit of saving.
⬜ Automate the amount. Set up automatic withdrawals monthly or on paydays, so you never get a chance to spend the money.
⬜ Adjust to living on less.
⬜ Make your goal.
⬜ Now use the money for debt repayment or investing or personal growth!

Other Resources

How to Build Your Emergency Fund

Why I Don’t Have an Emergency Fund

How to Stop Living Paycheck to Paycheck

21 Strategies for Creating an Emergency Fund, and Why it’s So Critical