Creating a savings plan is one of the best ways to ensure your financial security in these uncertain times. Most financial experts will tell you that your emergency fund should cover for 3 to 6 months’ worth of living expenses but to gain more security, you should extend that up to 12 months. But even when the will to save up for emergency funds is there, most people find it difficult to actually set aside funds needed to be put into the emergency savings account. It is not an impossible task, though. Make sure you set realistic plan together to ensure that you have the funds available during emergency cases.
Here are some tips to get you started:
1. Determine your expenses in accordance with the household budget. If you need to use a budgeting worksheet, feel free to do so. If you are working on a limited budget, always shop with a list so you end up buying only the things that you need.
2. Regularly review your budget. If you see loopholes, make adjustments accordingly. Your goal is to minimize your spending without depriving you and your family of the basic needs. But if you can find things that you can do without, it makes sense to get them off your next shopping list.
3. Always research on your savings options. Not all bank accounts are the same because some offer more perks than you think. Also, consider banks that are most secure and reliable.
4. Always pay yourself first. It is easy to get caught up with your expenses once you receive your paycheck. But when you set aside money for your emergency savings first, you will have less stress to tackle on when it comes to budgeting your income.
5. Consider how much you actually need to have in your emergency savings fund. As mentioned above, be realistic. There is no point putting more pressure in yourself. You have to learn how to live at the present and prepare for the future.
