#84 – Build an Emergency Fund

Week 2 of our financial challenges and this is about saving money. Creating an “emergency fund” in case you need to pay a insurance deductible, unexpected medical bill, appliance went out, or even if you lose your job. It can seem impossible to save money especially with the cost of everything going up. I can promise you that piece of mind where you won’t have to ask your parents or increase your credit card will be worth it! Using what you learned last week on where you could potentially cut back and save. I am going to preach some Dave Ramsey here. If you are in debt, you still need at least a $1000 emergency fund. This will help you not stop the momentum of paying off your debts even if something happens.

Easy Challenge: Decide why you need an emergency fund. Knowing why you are doing it will help you stick to it.

Medium Challenge: Investigate how to set up an automatic transfer either through the bank or your paycheck. You can set up multiple accounts with your paycheck. Doing it this way, it’s almost like you never had the money to start with. Instead of seeing what’s leftover, you pay yourself first.

Hard Challenge: Now you have your why, set your goal for the year. Divide that by 12 to know what your monthly savings would need to be. Set up your automatic transfers to achieve that goal.