Building an Emergency Fund

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In today’s B’s Finance Minute, let’s talk about Building an Emergency fund. This is important because in the event of a family emergency due to illness, job loss, or any other tragedy, you can survive for 3 months.

Your emergency fund should be equal to 3x your monthly survival number. Therefore the first step Is to identify how much money your family needs in a month to pay for your basic expenses for food, housing, schooling, car, gas, utilities, insurance and all other necessities. 

Second, multiply this monthly amount by 3 because you want to make sure you can survive For 3 months if you or your spouse cannot work. Third step, keep this In a savings account.  Don’t put this in stocks or high risk mutual funds because you want this to be safe and to be liquid.  Having an Emergency Fund is your duty and your responsibility.  This is B’s Finance Minute. My intention in this blog Is to create a positive lasting difference. Share this so you can too!

Bernadette Laxamana

Bernadette Laxamana is the Founder and President of Karista Mortgage. She is driven to live her best life with purpose while create a positive lasting difference in others lives.
Bernadette Laxamana

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DISCLAIMER:The information in this video and post is solely advisory, and should not be substituted for legal, financial or tax advice. Any and all decisions and actions must be done through the advice and counsel of a qualified attorney, financial advisor and/or CPA. We cannot be held responsible for actions you may take without proper financial, legal or tax advice.

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