Emergency Fund

What is an emergency fund? It is an amount of money that you keep for emergencies. To start, you will need $1,000. After you have paid off ALL of your non-mortgage debt you will need to save between 3 to 6 months of your living expenses. Now is $1,000 enough to cover everything? No. But that’s the point. It motivates you to focus on the debt repayment. Now remember, this fund is only for emergencies. Vacations, shopping sprees, and Christmas are not emergencies. An example of an emergency is a car repair, or a plane ticket to see a sick relative. So where is the best place to keep this money?  A typical savings account will do. You can even keep cash in an envelope in your drawer. But remember, this cash is only for an emergency. Keep in mind that eliminating debt and building wealth is a slow process. If building wealth was easy, everyone would be rich. So trust me. This is only one of the steps that need to be followed to become wealthy. Learn more. Sit down with a financial coach. Preferably one with real life experience. Reach out I will help you conquer your emergency fund.