I recently published a post that talks about the first thing to do with your paycheck. In that post I talk about my father being laid off and still being able to support a family.
My father was out of work for about 11 months.
This leads me to ask, how long will your emergency fund last you?
Most articles I find on building an emergency fund suggest you should have 3- 6 months worth. But what happens when you can’t find work for 11 months?
Life has a way of throwing curve balls at you and I believe it is always better to be over-prepared.
An emergency fund can cover in the case of:
- Job loss
- Unexpected medical expenses
- Car repair
Just to name a few.
The purpose of this post is to challenge you to build an emergency fund that will last at least 12 months.
A few ways to quickly build a lasting emergency fund are:
- Live below your means for a while while saving money
- Find a side hustle that generates extra cash flow
- If you have the luxury of time, getting a second job may help
- Ask for a raise, then save the difference
Having cash set aside for an emergency is a step closer to financial freedom and helps you live stress free.
These are just some thoughts on emergency funds. Let me know what you think in the comments below.