Would Your Finances Survive an Emergency?
With the rising cost of living, one of the things that concern families is that they have no room to move when it comes to needing extra cash. So if anything goes wrong e.g. the hot water service dies or the car needs a major service they would have to turn to some form of credit to fund that expense.
But what if there was a way where you could “fire proof” your finances?
Well there is! It’s called an Emergency Fund and it is so achievable but you do need to be focussed and determined to get it started and diligent enough to keep it safe from those “Robbing Peter to Pay Paul” fingers.
First of all decide how much you need in your emergency fund fund - you can download a simple guide here
Then follow these 5 steps to get you there:
Every time you get paid set aside some money for your emergency fund
Continue to do this until you have enough money that you feel would comfortably be enough to help you in your time of need.
Open up a savings account that is separate to your normal banking - preferably one that pays interest
Set & Forget... Don’t be tempted to borrow from your emergency fund under any circumstances - that new pair of shoes is NOT an emergency
Enjoy the peace of mind you get from knowing you have a fund you can draw on when life hits you hard