Keller Williams Realty-FM
Keller Williams Realty-FM
Charlotte Finley, Keller Williams Realty-FMPhone: (214) 422-5864
Email: [email protected]

How to build your own emergency fund

by Charlotte Finley 12/03/2023

Building an emergency fund is a crucial step in establishing financial security for your household. Like it or not, we all encounter unexpected expenses, whether they be from an appliance breaking or major lifestyle changes. Here are some tips to help you get started and build an emergency fund:

Set a savings goal

Determine how much money you would like to save for your emergency fund. It is generally recommended to aim for three to six months' worth of living expenses. This will provide a cushion to handle unexpected financial emergencies.

Make it automatic

Set up an automatic transfer from your checking account to a separate savings account for your emergency fund. Automating the process ensures that the money is consistently saved without relying on willpower alone.

Start small & and be consistent

If saving a large sum seems overwhelming, start with small contributions and gradually increase them over time. Consistency is key. Even saving a small amount regularly can add up over time.

Save windfalls & extra income

Whenever you receive unexpected income, such as a tax refund, a bonus, or a gift, consider putting a portion or all of it into your emergency fund. It's a great way to boost your savings without impacting your regular budget.

Keep it separate

Maintain your emergency fund in a separate savings account, preferably one that is not easily accessible for day-to-day spending. Keeping it separate will reduce the temptation to dip into the funds for non-emergency purposes.

Remember, building an emergency fund takes time and discipline. Stay committed to your savings goals, be patient, and celebrate each milestone along the way.

About the Author

Charlotte Finley

Hi, I'm Charlotte Finley and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.