These days, as costs climb, squirreling away money for emergencies can feel daunting. Recent data on inflation reveals that the cost of living keeps going up, unaffected by the Federal Reserve’s rate increases.
Yet, boosting an emergency fund is doable with a few practical steps. Here’s how to begin or enhance your savings:
- Get your expenses down on paper
Start by tracking your monthly costs, advises Lori Gross, a financial advisor. From housing to leisure, knowing your expenses can guide your savings goals for emergencies and other big-ticket items. Experts often recommend having a financial cushion of three to twelve months’ worth of expenses, but this varies depending on personal circumstances.
- Save consistently and without fail
Put your emergency savings on autopilot, suggests Sam Waltman, a wealth advisor. Treat a portion of your income as a fixed savings contribution and arrange for it to be automatically deposited into an emergency fund account.
Get the full list by clicking below… because right now is the perfect time to start building your emergency fund.
