Imagine being caught off guard by a sudden job loss, car repair bill or a trip to the emergency room.
Will you have to turn to credit cards or family and friends to pay for these? Imagine the stress this creates!
Life is full of surprises and having an emergency fund can provide a safety net for unexpected expenses just like these.
To set one up, first you need to decide how much you want to have in your fund. The rule of thumb is to have at least three to six months of living expenses saved up.
Next, choose a high-interest savings account or a home loan offset account to keep your emergency fund in.
Finally, set up a recurring weekly or monthly money transfer into this account. You can start with any amount really. The key here is to get started. Overtime, your emergency fund will build up.
Don’t let life’s surprises knock you down in 2023. Start building your financial fortress with an emergency fund today.