Life is full of challenges, but financial stability in the midst of a crisis doesn’t have to be one of them. But what can we do to protect ourselves? There’s one tried-and-true technique that can help anyone weather financial emergencies.
One solution could be building up an “emergency fund.” But where to start?
Saving depends on your cash flow. If your income is consistent, start small and set aside a specific amount of cash each pay period. If you can afford to do more than that occasionally, go for it! Your savings will grow quickly.
Another way to save could be through work. If you receive paychecks through direct deposit, see if your employer can divide the pay between two bank accounts.
But what if your income is not the same every month?
If your income is more inconsistent, try to set some cash aside when you can. Weeks when you have more money available are the best times to move a little extra into savings.
There are also multiple one-time opportunities to save throughout the year, such as yearly tax refund checks.
Building an emergency fund can help to address any unforeseen challenges. How frequent you make income will guide how best you should save. Talk to your employer and take advantage of yearly opportunities to save — and be prepared for anything.