We always stress the importance of having an emergency fund at the ready. Years ago, our standard advice was to have 3 months’ worth of income saved for an emergency, but these days, most people need at least 6 months’ income to weather a period of unemployment. (The current average duration of unemployment is actually over nine months, so the larger the emergency fund, the better.)
Cameron Huddleston has written a great article for Kiplinger.com that offers 7 Strategies to Build an Emergency Fund.
Check out the link to read the full article, where you’ll find some solid and time-honored advice:
- Save – don’t spend – your tax refund.
- Pay yourself first.
- Generate extra cash to stash.
- Set a goal and monitor your success.
- Create a competition.
- Toss spare change in a jar.
Be sure to check out our free online courses for help with budgeting to make your savings plans more successful.