If you are finding yourself in a good financial situation you might not be thinking about the downside, or the worst case scenario. If you haven’t been paying attention to the world around you then you might not have seen just how bad it can get. For that reason, you have to be thinking about the possibility of your financial situation changing. That’s why it’s a good idea for you to start an emergency fund.
The easiest way to start a fund is by getting a budget prepared and figuring out what the minimum amount of expenses you require for each month. This must be noted: you should not be dishonest about anything. Don’t pretend like a bill does not need to be paid. Everything, but be paid on time and in full in the event of a job loss or a temporary freeze on income.
Once you have that sort of math figured out you can move forward with saving. Your emergency fund should be the first thing you save for. You cannot waste a single second waiting for the right time to start it. You can start with whatever is in your savings account, then begin a plan that will aggressively save you fifteen to twenty-five percent a month.
You should not stop till you have six months saved. The recession can affect anyone at anytime. You should be prepared as best you can be for it. Having an emergency fund is the best insurance policy you can ever own.