Have you noticed that when unexpected expenses occur, they usually come in threes? That’s only ONE of the reasons why everyone should have an emergency fund!
A crucial element of financial freedom, an emergency fund can prevent you going into debt, and in this weeks episode I go into detail about WHY it’s so important, and I tackle some of the questions that arise when the subject does.
So start today, save a little bit each month towards it. Pay your future self first, and when an ‘unexpected’ expense happens, you will have that money available to use as you need.
Show Notes
- [01.15] There are four reasons why it’s so important
- [05.14] So how much do you need?
- [06.28] What do you use it for?
- [08.58] Where do you actually put the money?
- Do NOT use your access bond or mortgage home loan for this
- What you should use for your emergency fund
- [14.42] So how long should it take you to get to six months of savings?
Related posts and episodes
- The Brain Hack you can use to grow your wealth on autopilot
- The Road to Poor – Part 1: Getting out of debt
- The controversial advice I give people in debt
- The human way to manage your monthly expenses
- Two ways to manage unexpected expenses
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Quotes
“One of the biggest reasons people get into debt is because of ‘unexpected expenses’.” – Lisa Linfield
“Unexpected expenses absolutely can be planned for.” – Lisa Linfield
“Knowing you have a big safety net is peace of mind like no other.” – Lisa LInfield
“You need to pretend that your emergency fund doesn’t exist.” – Lisa Linfield
“The biggest trap people fall into is that they keep using capital to fund emergency expenses or short falls in their income or increased expenses, instead of cutting their expenses to match the season they’re currently in.” – Lisa Linfield