Stunna
Valued Contributor
Having an emergency is something that happens from time to time in our different lives without expecting. In regard to this having an emergency fund is a very good and important part of personal finance and can help in financial security during unexpected events such as job loss, medical expenses, or car repairs. Here I will give some steps you can take to start saving money in case of any emergencies arises
By determining your emergency fund goal you can have a general rule of thumb to save three to six months' worth of living expenses in other to have some savings in case you have emergency at any point in time. Knowing how much money you have coming in and going out each month can help you determine how much you can really set aside for your emergency fund.
Have an automatic transfer from your checking account to a savings account each month to help you manage your income. Cut off some expenses,kook for ways to reduce your monthly expenses, such as by cutting down on eating out, subscription services, buying unnecessary things or other discretionary spending.Shop around for a savings account with a competitive interest rate, so your money can grow while it's being saved.
Building an emergency fund can take time and it will really require you to be patient and follow the process but it's important to stick with it. The peace of mind that comes with having a safety net is worth any effort you will have to put in.
Remember, the main reason of an emergency fund is to give you with financial stability in times of need, so it's important to make saving for it a priority.
By determining your emergency fund goal you can have a general rule of thumb to save three to six months' worth of living expenses in other to have some savings in case you have emergency at any point in time. Knowing how much money you have coming in and going out each month can help you determine how much you can really set aside for your emergency fund.
Have an automatic transfer from your checking account to a savings account each month to help you manage your income. Cut off some expenses,kook for ways to reduce your monthly expenses, such as by cutting down on eating out, subscription services, buying unnecessary things or other discretionary spending.Shop around for a savings account with a competitive interest rate, so your money can grow while it's being saved.
Building an emergency fund can take time and it will really require you to be patient and follow the process but it's important to stick with it. The peace of mind that comes with having a safety net is worth any effort you will have to put in.
Remember, the main reason of an emergency fund is to give you with financial stability in times of need, so it's important to make saving for it a priority.
