This post is part of a series on staying on top of your finances.
Now that you’ve automated your finances, it’s time to dig deep on one of the most important, yet unpredictable, aspects of personal finance.
Your emergency fund.
Because here’s the truth:
Many Americans will do well and have a better shot at staying on top of their finances and having more financial control, if there were no emergencies.
After all, you know your monthly income (after tax) and expenses.
And you can decide how much to put towards savings and retirement.
Except you don’t know how much of your monthly income will go towards emergencies.
Basically, emergencies are events of life that we didn’t expect.
- Job loss
- Health care emergencies
- Car expenses
- When a loved one passes
- Unexpected travel
- Household repairs
In this chapter, I’m going to show you EXACTLY how to prepare.
That way, when any of these financial emergencies hit, you’re better prepared without causing a huge damage to your financial stability.
Build up an Emergency Fund
Building up an emergency fund is not easy.
You’re trying to prepare for something that may/may not happen.
But, as they say, life is full of surprises.… CONTINUE READING