People always ask me about investing money in the stock market, but my question is do you have an Emergency Fund? 🤔
Before you can investing your money, you first must consider and prepare for the unexpected financial storms that like to sneak up on us. For example car repair, leaky roof, job loss and etc…
Another question I get asked a lot is, “well, how much should I have in my Emergency Fund?” Use a monthly budget worksheet to calculate total expenses for the month.
I recommend using my 1-3-6 Method to set your Emergency Fund goals. Total monthly expenses times 1= 1Month Emergency Fund. Once you’ve accomplished this goal celebrate🎉 ! Then take your total monthly expenses times 3=3Month Emergency Fund. This is a great accomplishment so celebrate 🎉👏🏽! It’s okay to take a break here and focus on other financial goals. By this time you have created good habits to save money and can see the results.
But I challenge you to take it a step further and go for the 6Month Emergency Fund goal! By now you get the formula, go for it!!!
It’s all about 👶 steps, the challenge most people have is starting. Sometimes that might mean starting small $ and gradually add more $$ later.
Financial Planning 360ish 