Earlier this year I made a commitment to start saving money more consistently than I ever have in the past. I’m doing this by setting aside 15% of my income as soon as it comes in.
Essentially I PAY MYSELF FIRST.
This pot of money is called my Emergency Fund and I am eager to help it grow.
It is advised to have 3 to 6 months worth of living expenses in your Emergency Funds. And I have set my sights on achieving a minimum 3 months worth within my 1001 day challenge. I hope to hit this one out of the park and over-achieve on this.
Suze Orman actually advises an 8 Month Emergency Fund! I’d like to reach that one day – but I believe in baby steps!
I read up and found this article to be very helpful and will list the steps here:
- Decide how much you’d like to save.
- Calculate your monthly expenses.
- Open an account.
- Determine how much you can afford to save.
- Set up automatic deposits.
- Find ways to boost your savings efforts.
In my case this goal is SUPER important to me.
I’ve experienced multiple instances in my life where I felt like kicking myself for not paying enough attention to my savings.In each case, had I a much larger & cushier Emergency Fund to bail me out I would have panicked and worried a whole LOT less.
I won’t go into too much detail about these instances, but needless to say, I have learnt my lesson… it only took a couple of times to get the message through!
After I drained all my savings (and then some) last year, (but I sincerely do not regret doing it as it was imperative to do so), I am ready to get back on track.
I’m assigning a figure to this goal. According to my calculations I need approx $2,200/ month to be OK. Thus, I will set aside (and not touch – unless absolutely necessary) a minimum of $6,600 by the time day 1,001 arrives.
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