Chris O'Shea
When a financial disaster strikes, you want to be prepared. There are some things you can do to be ready. Here’s a quick guide to prepping for a financial emergency.
Budget First
Make sure you have a solid household budget in place. If your finances are in order, you’ll be less impacted by a financial pitfall. Go through your budget and make sure it is updated.
Fund The Fund
Your emergency fund is called that for a reason. If you don’t have six months’ worth of expenses stashed away, aim to get there as quickly as possible.
Reduce Debt
Set a goal to reduce your total amount of debt. You don’t want to be dealing with mounds of debt and a financial emergency at the same time. Tackle the debt with the highest interest rate first, then keep going from there.
Automate Savings
Prepare for the impact of a financial emergency by having your savings ready. Most workplaces allow you to split your direct deposit paycheck into two spots, so make sure some of your money is going directly into a savings account each pay period.
Do One Thing: Make sure you have at least six months’ worth of expenses stashed away so to help deal with a financial emergency.
