Today I’ll tell you how you can start your emergency fund saving process and keep it up.
Start Saving Your Emergency Funds-
#1 Start With Calculating Income
If you are not sure about your monthly or yearly income then you will not get to know how much you should save, start with calculating your overall income. Cut all the taxes, subscriptions and then calculate your income.
#2 Start Saving With 10%
Let’s start with tiny and gradually move forward to 15 % and then 20%. Keeping it low on beginning won’t hurt you much and you’ll also save a handsome amount of money for your emergencies.
#3 Get An Emergency Saving Account
These accounts are best as this remains separate from your regular account and chances of withdrawing cash from them are fewer. Do not save in cash or just anywhere; an account helps more efficiently.
#4 Keep It Automatic
Another thing is that you should always keep the cash deduction automatic to your emergency account. This way you do not get any excuse for not saving any particular month. If you ever think of doing trading to make some extra money you should check out here the RSI divergence indicator that leads to price action in trading market.
#5 Always Look For Ways To Manage Expenses
Another great tip is that looking out the ways to cut expenses and save even more. Coffee lovers can make coffee at home and similarly sign off from any gym, Netflix or other subscriptions you do not use much.
#6 Keep A Track
It is necessary so you can be motivated to save more in the future. Always review your incomes and promotions and see how much you have saved in your emergency account.
#7 Use It Only On Emergency
Respect its name that is the emergency fund if you don’t want to regret later. See it as your last lifeline and use only when you find no sources of getting money from anywhere.