monthly budget<\/a> that you do not touch in your everyday life. <\/p>\n\n\n\nThe aim is to have it be a relatively low cost that doesn’t affect your everyday life and still leaves you with enough money in your financial budget to provide for all of your regular expenses such as bills, food, rent, or mortgage payments. <\/p>\n\n\n\n
It shouldn’t put you at any risk of creating extra debts, but rather be there as a safety net if the unthinkable were to happen. <\/p>\n\n\n\n
If you don’t already have one, now is the time to start saving, but that begs the question, what should you put into your emergency fund?<\/p>\n\n\n\n
An emergency fund is a savings account or investment portfolio that you build over time. The goal is to have enough money saved up to cover at least three months’ worth of living expenses. <\/p>\n\n\n\n
This amount of course will depend on your lifestyle, the number of people in your household that you provide for, and your current income. <\/p>\n\n\n\n
Whatever you are earning, you should try to square away a bit every month, even if it is the tiniest amount. <\/p>\n\n\n\n
You may not notice it coming out every month now, but over time it can build up to be an important safety net in struggling times. <\/p>\n\n\n\n
You might also want to consider putting some money aside for retirement. This is especially important if you plan to retire early, or if you do not have long-term job security for the future. <\/p>\n\n\n\n
If previous financial crashes and other market-related disasters have taught us anything, it’s that nothing is permanent and even the most secure-looking job can be taken away at any moment. <\/p>\n\n\n\n
You can use your emergency fund as a safety net in case something happens and you need money quickly. <\/p>\n\n\n\n
The more you save up, the longer you can support yourself if unforeseen expenses or circumstances come about in your life. <\/p>\n\n\n\n