Build an Emergency Fund
One of the hardest lessons COVID-19 has taught us is how important it is to have an emergency fund ready. You never know when everything will be taken away from you and the last thing you need is to lose it all with nothing to fall back on.
How much should you save? It’s easier to set small goals, remember? So start off by saving up for three months’ worth of needs and wants. Once you tackle that, add three more, and so on and so forth. A lot of experts recommend having at least a year’s worth of money in an emergency fund but others say it’s OK to stop between six and nine.
How much you save is entirely up to you and your lifestyle. How much you CAN save is up to how much you can cut, such as a gym subscription you haven’t been using much, or a subscription, or even automobile detailing. If there’s a crack, get rid of it and put that money to good use instead, preferably in an emergency fund!
