What’s that one thing all accountants and financial advisors keep telling you to do? It’s to build an emergency fund with at least a thousand dollars. Most Americans have less than a $1,000 dollars in their savings. This can cause a number of difficulties during emergencies. Having some money set aside in savings can be useful when unexpected problems or emergencies come up without warning. Building up an emergency fund can seem daunting at first, especially if you are younger, but it is one of those things you just have to do. There are a number of steps you should take to gradually build your fund. This article explains the process of creating an emergency fund in just 7 easy steps:
7. Set a goal
Setting a goal prepares you psychologically to achieve what you want. Realistic and flexible goals are the first steps towards success. If you cannot save a large amount of money in a short time, try to save a small, fixed amount of money every month. Although it doesn’t sound like a big deal, the money can add up over time.