Maintain the Emergency Fund
Maintain the Emergency Fund
Once you reach your goal, keep going. Maintain the habit of setting aside a portion of your earnings for the future. This will help with emergencies and enable you to build a retirement fund later on.
Experts recommend saving at least 6 months’ worth of living expenses. This may seem like a lot and can take time to build, but you will not regret this when the money cushions a job loss or other financial crunches you may encounter.
Every time you have 1 month of living expenses saved, set it in a separate account that’s not linked to your standard checking accounts. If it helps, open an account in a different bank to make it herder on yourself to tap into those funds.
Today's tip brought to you by Mvelopes and Money4Life Coaching.
Originally published May 28, 2018.
