Had to take your pet to the vet because they got into the trash, again? What about that check engine light you’ve been avoiding? Or, hypothetically, did a global pandemic shut down the world and destroy your income? 

Sh*t happens. 

The importance of being proactive vs reactive in moments like these can save you from drowning in debt. Start your emergency fund now and be prepared for if (let’s be honest, when) sh*t hits the fan. 

Why an Emergency Fund Matters

• Peace of Mind:
  • A backup plan reduces stress and helps you sleep better at night. Roughly 33% of people in the US have less than $100 in a savings account. That stresses me the f*ck out. Once you reach your first financial goal, feel your financial stress dissipate. The pressure of capitalism weighs on your mental and emotional health. You’ll be surprised how many things change once you’re financially free.
• Avoiding Debt:
  • With an emergency fund, you won’t need to rely on credit cards or loans that can lead to high-interest debt. This is so important. Most of us aren’t credit card people due to the interest rates and missed payments. (Missed a payment in the last 1-2 years? You aren’t a credit card person.) Don’t allow credit card companies to take advantage of YOU!

How Much to Save?

Aim to save three to six months’ worth of living expenses. This should cover necessities like rent, utilities, groceries and transportation. I use the $10,000 goal as a good marker providing more cushion, especially when there’s a car expense. 

Tips for Building Your Fund

• Start Small:
  • Save a little from each paycheck. Even $5 a week can add up. Know that something is better than nothing!
• Auto Save:
  • Out of sight, out of mind. I use SoFi (gotta love that 4.6% APY) and direct deposit money from every paycheck to a savings account. This way money is gathering without thought. Check-in after 6 months and be surprised by your (not so hard) work! Use my referral link for up to $300 bonus when you sign up.
• Hunt for Deals:
  • Something we are trying to tackle at C/C is the hunt for a good deal but some of the hardest things are groceries, gifts and children’s items. Some items have longer deals, but the best deals are often flash deals. Sign up for our Telegram to be notified for fast deals.

Bottom Line

Financial Freedom is Freedom.

When sh*t hits the fan (and it will) you and your family should be prepared.

Stop drowning, set your standards and start saving today.