Sunday, August 14, 2016

Money Matters: Create an Emergency fund

One of the best things I ever did to help me get out of debt and start building a better financial future for myself was to create an Emergency Fund.

Set up a special bank account and every week/month add some money to it.  Many people who recommend emergency funds (such as Dave Ramsey) advise putting aside £1000.

However, anything you have put aside is a bonus.  So don't think "I can't put £1000 away right now" because you'll never get there.  Just start putting away a little every week.

Example

I was in debt and obviously my priority was clearing the debt, but I knew I needed my emergency fun because then I had something to fall back on instead of having to go further into debt.  So I simply started saving just £5 into my emergency fund each and every week.

Mindset: Having the emergency fund in place really helped me to feel positive about money even when I was still in debt,

Let's carry on this conversation below in the comments.

Wendy


No comments:

Post a Comment