Building emergency fund

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Ravindra Gupta

• May 03, 2020 01:46

Emergency funds are a great way to navigate difficult financial times especially during a job loss or other unexpected financial needs.

Even during a normal economical environment, one should be targeting to save for at least 3 months worth of necessary expenses. However, in these difficult times, when getting another employment opportunity is difficult, strive for saving at least 6 months of necessary expenses.

The quickest way to save toward emergency fund is to pay yourself first. Always set aside a portion of your income (after your necessary expenses are met) to save towards emergency fund. You can always open a high yield online savings account for this need. Try to save these funds in a separate account, so that you don't touch those.

If you have other interesting methods of savings for an emergency, please comment on this post.

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  Monique - Thrive Moderator🌱

  • May 07, 2020 00:10
  • Edited

  Thanks for sharing Ravindra Gupta. Take a look at this article on "5 Quick Steps to Start Building Your Emergency Fund Now" for more information. Let me know if this was helpful. 

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