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!