Financial upheaval can happen at any time; maybe you experience an unexpected lay-off or a sudden illness that keeps you from work. The best way to weather that type of financial stress is to have an emergency fund already in place.
The emergency fund rule of thumb is to set aside three to six month’s worth of living expenses in an easily accessible, liquid account. If you already work from a budget, you’ll have a good idea of what you’ll need to save.
If not, now’s the time to chart your income and expenses. Use that information to set an emergency savings goal and develop a plan and a deadline to achieve it.
Some ways to achieve your goal are to save more aggressively, and to trim discretionary spending on items like movie tickets, clothing and dining out.
No one knows what the future holds, and having an emergency fund will help you be prepared for some of what life throws your way.
For more information about saving for your financial goals, give us a call today!