Happy New Year! For 2020 I promised to share my five-step BONUS system for overcoming financial stress and achieving wellbeing.
Here’s stop one, the B in BONUS:
Build emergency savings.
Sounds simple, right? But consider: Six out of ten Americans couldn’t cover a sudden $1,000 expense. Talk about a recipe for sleepless nights!
On the flip side, studies have shown that accumulating a rainy-day fund – a financial cushion – is one of the most efficient ways to shed financial stress. If you want a quick boost to your wellbeing, creating a nest egg is a great option.
So, where to start? With your money mindset.
Your first thought about saving for emergencies may be that it will deprive you in the here and now. But is that really true? Emergency savings offer gifts of their own: peace of mind, stability, and – yep – better sleep. An emergency fund is a boost to your wellbeing.
A good rule of thumb is to have enough in emergency savings to cover several months of expenses. But if that sounds intimidating, remember: whatever you can do is better than nothing.
In fact, it’s OK to start small so you can notch early successes. Commit to putting $50 from every paycheck into an emergency savings account. There are online savings accounts paying 2% interest right now – woo hoo! You can do this yourself, or for a helping hand, contact me for a consultation.
Before you know it, you’ll see interest piling up and your emergency cushion getting bigger. That’s your money working for you. Congratulations!
Next up is O. Stay tuned….