By M Katie Helle, CPA –
As many of us have learned over the last several months in dealing with the pandemic after-effects, it really is never too early to plan for the future. When most people think of planning for the future, they think of saving money. This can be done by creating an emergency fund that can be used when events such as the current pandemic occur. Most experts suggest saving three to six months of expenses in an emergency fund. For young adults starting their career, this dollar amount may seem like a monumental goal. Because this could be overwhelming to some, a small more achievable goal could be used – such as $500 or $1,000. Then when that goal is achieved, add increments to it to grow your emergency fund. For instance, set an initial goal of $500. When this goal is achieved, bump it up to $1,000. Then when that goal is met, double it to $2,000. Do you see where I am going here? Before you know it, you will have three months of expenses saved and for many achieving smaller goals is far more rewarding.
No one has ever said they were upset about having an emergency fund. In fact, you will most certainly thank yourself for creating this emergency fund if you are ever faced with a hardship. There are some great resources online to get started with your emergency savings. Here are some resources to get you started: