Kia Ora Friend,If you don't have one, you need one. An emergency fund is the foundation for your financial security.Here are some steps can you take to build your emergency fund.Create a Budget - [More In-Depth Article]The necessary first step to financial security is creating a budget. A budget makes you aware of you money - what you need to pay for bills and what can be put away for short, medium and long term financial goals (including building up that emergency fund).In case you haven't got a budget, let's walk through it together...Maintain a System - [More In-Depth Article]Following a budget ain't easy. Setting up an automated system allows you think less about bills and more about enjoying your life (and effortlessly building that emergency fund).In case you haven't set up that system, let's walk through it together...The Emergency Fund - [More In-Depth Article]Pat yourself on the back if you are this far, now let's talk about the grunt of what you need to hear.If you think of your finances as a big tall building, the emergency fund is the foundation. The bigger the emergency fund, the stronger your foundation will be and the taller your building.No foundation? Then it's like someone replaced your tall tower with giant Jenga blocks build on quicksand.I think you get it now. What to do?Aim to have 3-6 months worth of essential spending in your emergency fund. Because you have budgeted, you will know exactly how much you will need.Put your emergency fund in a different bank. This will keep it seperate from all your other finances and you won't be tempted to spend it all when it is out of sight in a different bank you would not normally access.Keep it liquid and don't go investing it in an mutual fund. That money has to be easy to access when you have something unexpected.Get started now! Emergencies can happen anytime. Your budget will show you how much you can put away per week to build up your emergency fund. Alternatively, you can also sell unused items to make that process a bit quicker.I cover more about emergency funds in my article, so please give it a read.As a disclaimer, I am no financial advisor and this is purely anecdotal information so please so you research when you make financial decisions.I hope all this helps you out. Please let me know what you think by replying to this email.I hope you have a good week and look forward to chatting in the next,Shivan
Why you need an Emergency Fund
Why you need an Emergency Fund
Why you need an Emergency Fund
Kia Ora Friend,If you don't have one, you need one. An emergency fund is the foundation for your financial security.Here are some steps can you take to build your emergency fund.Create a Budget - [More In-Depth Article]The necessary first step to financial security is creating a budget. A budget makes you aware of you money - what you need to pay for bills and what can be put away for short, medium and long term financial goals (including building up that emergency fund).In case you haven't got a budget, let's walk through it together...Maintain a System - [More In-Depth Article]Following a budget ain't easy. Setting up an automated system allows you think less about bills and more about enjoying your life (and effortlessly building that emergency fund).In case you haven't set up that system, let's walk through it together...The Emergency Fund - [More In-Depth Article]Pat yourself on the back if you are this far, now let's talk about the grunt of what you need to hear.If you think of your finances as a big tall building, the emergency fund is the foundation. The bigger the emergency fund, the stronger your foundation will be and the taller your building.No foundation? Then it's like someone replaced your tall tower with giant Jenga blocks build on quicksand.I think you get it now. What to do?Aim to have 3-6 months worth of essential spending in your emergency fund. Because you have budgeted, you will know exactly how much you will need.Put your emergency fund in a different bank. This will keep it seperate from all your other finances and you won't be tempted to spend it all when it is out of sight in a different bank you would not normally access.Keep it liquid and don't go investing it in an mutual fund. That money has to be easy to access when you have something unexpected.Get started now! Emergencies can happen anytime. Your budget will show you how much you can put away per week to build up your emergency fund. Alternatively, you can also sell unused items to make that process a bit quicker.I cover more about emergency funds in my article, so please give it a read.As a disclaimer, I am no financial advisor and this is purely anecdotal information so please so you research when you make financial decisions.I hope all this helps you out. Please let me know what you think by replying to this email.I hope you have a good week and look forward to chatting in the next,Shivan