No, it is not enough money in your hand for a martini or a bottle of wine or a new pair of shows!
Truly, what is your idea of an emergency fund? Maybe, if you are in a relationship, you may think that it is having to go to your partner for help. Really?
An Emergency Fund is very personal. Here are the steps to creating Your Emergency Fund:
- Estimate your monthly expenses.
- Begin a category in your monthly spending plan.
- Put a number in your monthly spending plan to begin building Your Emergency Fund.
- With your next paycheck, put that amount in a separate account.
- Monitor your activity in this category.
- Re-examine how much you are putting into that account monthly.
- If there is extra cash, put it in the fund.
- Do not stop until you reach 1 month of expenses in the account
- Continue until you reach 2 months
- Continue until you reach 3 months
- Continue until you reach 4 months
- Continue, Continue, Continue