How to Save an Emergency Fund
1. Pay off Bad Debt First
2. Save 6 Months of Expenses
2. Save 6 Months of Expenses
If you have money in a savings account, but have bad debt, it's time to pay off your debt.
This bad debt is costing you interest every single month.
Pay it off, and then save an emergency fund.
2. Save 6 Months of Expenses
2. Save 6 Months of Expenses
2. Save 6 Months of Expenses
When you have no debt, you'll be surprised by how quickly you can accumulate cash in your account.
Determine how much you'll need to cover 6 months of expenses, and keep that money in an FDIC insured institution.
3. Close to Retirement?
2. Save 6 Months of Expenses
3. Close to Retirement?
If you're close to retirement, save up at least 1 year's worth of expenses.
This cash serves as security in case your appreciating assets or passive income investments are down in the short-term.