Preparing for unforeseen circumstances has never been so easy. Here is everything you need to know, including 6 frequently asked questions.
Saving without a goal in mind is a reasonable way to begin your journey of better spending habits.
But the key to adulting 101 is to have your finances in order and become aware that you can't expect every curveball. While it's impossible to prepare for everything, an emergency fund is guaranteed to reduce your stress and worry.
But what is an emergency fund?
Easy to access funds, set aside for an unexpected event such as a car wreck, loss of income, home repair, or broken appliances.
In simple terms it is money used for any sort of disaster. If you follow me on Instagram then you’ve already seen a few post divulging tips on how to save.
Whether or not you already have an emergency fund may depend on your current financial state, but it's never too late to start. And remember that your definition of an emergency may be different from someone else's.
Graduating on time is a goal of mine and an unexpected tuition bill was considered an emergency. I found out 1 week before summer courses began that I was missing a class needed to hit my 120 credits.
My job informed me that budget cuts would be happening later in the year and that was my signal to start creating a safety net.
Keep reading to find out everything there is to know about starting an emergency fund and what you should prepare for.
Why you should have an emergency fund
Life happens. Life is expensive. And it’s impossible to plan for everything.
You need to have money put aside not just for a vacation or a home thats in the future, but funds specifically for when everything gets turned upside down.
How can you start one?
Simple! Take $5 out of your wallet and put it in a jar.
Let go of expectations. Ignore the influencers telling you that they have 18 months of expenses saved and plan on adding $500 every week.
It doesn’t take away from your efforts. If all you can save is $20 a week then that is all you can do.
Organizing your finances is a huge step toward stability. For this specific fund, it shows you which area you are able to take away from in order to build your savings.
What should I plan for?
How much you want to save depends on your lifestyle. Prior to the coronavirus I was absolutely