Leah Kelvin
Active member
An important step towards financial stability is creating an emergency fund. In the case of unexpected expenses or job loss, an emergency fund acts as a financial buffer. Here are some ways to create an emergency fund:
1. Determine Your Target: Decide how much you need to save for your emergency fund. Most financial advisers recommend saving at least 3-6 months’ worth of living costs. However, this may change depending on factors such as level of job security, family situation and health.
2. Create a Budget: Making a budget is one of the most important things to do in order to build up your emergency funds. Take a look at all your income and expenditures so that you can identify areas where you can make cuts hence save more money. Have a target amount that you will be saving per month and always prioritize depositing some cash into your emergency savings account.
3. Choose the Right Savings Account: Select a savings account with high interest rates and no fees attached to it; usually internet bank accounts come in handy here because they have higher rates compared to traditional banks.
4. Automate Your Savings: By setting monthly automatic transfers from checking account into one’s personal savings/checkings, this allows for consistent savings and stops unnecessary spending on other items.
1. Determine Your Target: Decide how much you need to save for your emergency fund. Most financial advisers recommend saving at least 3-6 months’ worth of living costs. However, this may change depending on factors such as level of job security, family situation and health.
2. Create a Budget: Making a budget is one of the most important things to do in order to build up your emergency funds. Take a look at all your income and expenditures so that you can identify areas where you can make cuts hence save more money. Have a target amount that you will be saving per month and always prioritize depositing some cash into your emergency savings account.
3. Choose the Right Savings Account: Select a savings account with high interest rates and no fees attached to it; usually internet bank accounts come in handy here because they have higher rates compared to traditional banks.
4. Automate Your Savings: By setting monthly automatic transfers from checking account into one’s personal savings/checkings, this allows for consistent savings and stops unnecessary spending on other items.
