050: Money Moves in your 20s
Tip 03: Start emergency fund
Tip #3 Start a Curveball account
Today I want to talk about emergency fund or what I like to call a Curveball account.
Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event. How about you?
- Do you save money for emergencies?
I know it’s hard to even wrap your mind around the idea of being able to set aside emergency savings. But, what choice do you have? If some unexpected event happens and you do not have a cushion, you are putting yourself further in the hole.
- Let’s take baby steps. Begin by opening a savings account, earmark it as a “Rainy Day” fund or “Curveball account”
I suggest an online, high yield savings account which is connected to your checking account from which you to transfer funds back and forth.
- Begin saving of at least $50 (or if you can do more, Awesome!!) from each paycheck. You will see, that in some time all of the sudden you have a small stash of cash accumulated.
Your target should be 3 to 6 months of living expenses, as you calculated on your Money Flow worksheet.
I promise you, that you will feel a lot more freedom once you start growing your Curveball fund.