Emergency funds are something that every family and person should have. The harder it is for you to save for an emergency fund, just means that it’s all that much more important. This is because if something happens, you’ll want to make sure that you have the financial backing to solve or mitigate those emergencies, without losing your home or stability. This is important to understand, as it shows the importance of having backup money in case of emergencies. If you’re looking to start your own emergency fund, you’ve come to the right place. This article will help you start a fund that you can be there for you in times of financial need.
The first thing you should do when you’re looking to start an emergency fund is to make sure that you track your spending to the last penny every single day. This is so that you know exactly where all your money is going and what it’s being spent on. It’s important to have an idea of where you spend your money weekly, so that you’ll know where you can cut down on spending and put it towards your fund. If you’re having trouble tracking all your spending, it’s a good idea to find an app that does the credit and debit side for you. This way, you’ll only have to put in your cash purchases. Save your receipts! Writing it all down in the store or while you’re out can be annoying.
Next, once you have a good idea of the places that you’re spending your money, you should start finding ways to cut down on how much you spend. Every month, you should be putting at least 15% towards your emergency fund, and about 10% towards your savings account. This is a great way to start savings, but it’s unrealistic until you start really understanding where you can cut down.
If you’re finding it difficult to find places to cut down your spending, try meal prepping and cutting WAY down on going out to eat. Eating out can get incredibly expensive, so it’s important that you understand just how much that costs all together. Next, you should find other ways to cut down, a great way to do that is to start getting your glasses at Coastal. You can save hundreds of dollars getting your glasses. You can find other ways to save just like this by doing a bit of research and understanding exactly what’s out there.