[vc_row][vc_column][stm_spacer height=”150″ height_mobile=”-100″][vc_custom_heading source=”post_title” font_container=”tag:h4|text_align:center|color:%233f3f3f” google_fonts=”font_family:Montserrat%3Aregular%2C700|font_style:700%20bold%20regular%3A700%3Anormal”][/vc_column][/vc_row][vc_row][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][vc_single_image source=”featured_image” img_size=”large” alignment=”center” css_animation=”none”][stm_separator color=”custom” style=”style_3″ custom_color=”#0d97ff” sep_width=”200px” sep_height=”10px” sep_css=”.vc_custom_1571309810608{margin-top: 20px !important;}”][vc_raw_html]JTVCRElTUExBWV9VTFRJTUFURV9TT0NJQUxfSUNPTlMlNUQ=[/vc_raw_html][vc_column_text]Emergencies such as job loss, sudden hospital confinement, major house repair, or vehicle breakdown can deplete your savings. These situations require a quick response, and your savings goals can suffer while you attend to them. An emergency fund will serve as a cushion to protect your savings and help you achieve your goals.
An emergency fund is equivalent to 3-6 months of your living expenses. Saving this much money, for some, may seem like an insurmountable task. To help you out, here are four steps to build an emergency fund:
1. Assess your financial standing and set a goal
2. Set up your tools
3. Start with small, regular contributions
4. Boost income and cut expenses
If you take the steps one at a time, you will have an emergency fund within a reasonable period. This will help you avoid sacrificing your long-term goals when urgent needs hit. [/vc_column_text][vc_column_text]1. Assess financial standing and set a goal
Evaluate your current financial standing by looking at your monthly expenditures and incoming cash flow. It would be helpful to set your financial targets first- how much money do you need to cover 3months of expenses? How long will it take you to get there? Be realistic!
Outstanding debts can be simultaneously cleared while you are saving up for your emergency fund. We extensively discuss this in our podcast. Listen here. [/vc_column_text][vc_column_text]2. Set up your tools
In order to achieve your goal, identify the platforms or tools you will be using to make it as easy as possible. See which banks can offer high savings interest rates and put your emergency funds there monthly. You may also set up automated deposits from your payroll account to your designated savings account. This way, saving will be automatic and way easier for you.[/vc_column_text][vc_column_text]3. Start with small, regular contributions
Never be afraid to start your emergency fund with small amounts of money from your payslip. Do not feel pressured to put a lot in a short period of time because that may not be sustainable. Remember, what’s more important is to be consistent. The habit of saving will serve you even after successfully building your emergency fund. Do everything you can to stay motivated.[/vc_column_text][vc_column_text]4. Boost income and cut expenses
If there’s one thing that the global health pandemic has inspired people to do, it’s to find multiple streams of income. From baking pastries to selling trending home items, or providing accounting services, you now have the flexibility to improve your financial state.
However, if you feel that you’re not the type of person who’s interested in venturing into entrepreneurship, try cutting costs by finding extra money in your budget every month. You can let go of long-unused subscriptions, reduce food deliveries, control online shopping, and plan your meals strategically. In the long run, these cuts shall benefit you towards attaining your target emergency fund.[/vc_column_text][vc_column_text]Being prepared in times of financial emergency can protect you from the threat of predatory lenders and can empower you to overcome financial emergencies. You won’t encounter feeling demotivated after seeing your bank account savings at the lowest point.
Having a financial safety cushion can save you from financial stress and shall give you peace of mind should emergencies come.[/vc_column_text][vc_raw_html]JTVCRElTUExBWV9VTFRJTUFURV9TT0NJQUxfSUNPTlMlNUQ=[/vc_raw_html][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][vc_row disable_element=”yes” shadow_x_offset=”0″ shadow_y_offset=”0″ shadow_blur=”0″ shadow_spread=”0″][vc_column][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
[/vc_column_text][/vc_column][/vc_row]
