Money Tip | Have an emergency fund
👉🏼Start with a $1,000 emergency fund. This should be your very first step even before paying off debt.
👉🏼If you don’t have an emergency fund then you will keep relying on credit cards or borrowing from friends and family.
👉🏼Things will happen that are not in our budget and this is what the emergency fund is for. Something with your car needs to be fixed, an emergency vet visit with your pup, a broken toilet, etc. If the emergency wipes out your whole emergency fund, then you’ll just start over again and that’s ok. It’s better to use all the money in your emergency fund than have to put it on a credit card and pay interest.
👉🏼I suggest setting up a separate bank account for this that is not connected to checking so you won't be tempted to spend that money.
👉🏼I also recommend an online savings account with higher interest rates. (link to Ally below which is what I use)
👉🏼Set your savings amount for your emergency fund on auto draft so you don't forget and it comes out of your checking quicker so you don't see it to spend it.
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