Emergency Money Saving Tips
Financial security is one life aspect that many fails to accomplish on time. But now that almost nothing comes for free a happy-go-lucky disposition is anyone will be needing the least save for those born with a silver spoon like Paris Hilton, of course.
If you just happen to be one of those accident-prones or unlucky ones who just can’t get enough of his car dying on him or his house needing various icky repairs, the more you need to be good in handling your finances, especially socking away some of your earnings to grow your emergency fund.
Usually, an emergency fund is a 3-6 months worth of one’s daily expenses. But I think to be on the safer side, saving 6 months to 1 year worth of monthly expenses is definitely a feat. How do you just go about saving for your emergency savings cushion?
Start the math. Computing for the exact figure that your emergency fund must reach is the first step towards that goal. If you’re earning quite well, then go for the 6 months to 1 year emergency fund goal. But if you know that it will be quite hard for you to save that much easily, it’s fine to go for the 3-6 months thumb rule. This will lead you to coming up with a concrete goal that will help you measure your success in saving for your emergency fund.
Keep your emergency fund somewhere safe and liquid. Liquid investments are those that allow you to quickly cash in your investment. Though I suggest using plain savings accounts, do your homework and choose from these:
- checking accounts
- certificate of deposits
- money market accounts
- money market funds
- savings accounts
Read more about those liquid investment accounts
Pay yourself first. Saving money is never an easy goal for those who lack self-discipline. But if you have good budgeting techniques and are monitoring well your expenses, it shouldn’t be hard to sock away enough for your emergency funds. Don’t forget that whenever you receive some money that isn’t from your regular paycheck, it would benefit your financial stability a lot to ALWAYS save a portion of that money.
And, rewarding yourself or your whole family (cool if you’ve got them involved, too) after reaching your emergency fund goal with some treat will definitely make this a more fun and rewarding accomplishment, don’t you think so?
(Image from prezziesplus.co.uk)
Tags: emergency-fund, financial-security, saving-money-tips
0 opinions for Emergency Money Saving Tips
No one has left a comment yet. You know what this means, right? You could be first!
Have an opinion? Leave a comment: