As inflation lingers, carving out funds for emergencies may seem more daunting than before. The latest data reveals a continued uptick in inflation, meaning living costs are still on the rise.
However, it’s not all doom and gloom; there are uncomplicated ways to reinforce your emergency savings. Check out these tips:
- Tally up your monthly costs
Take a close look at your expenses, says Lori Gross, a financial planner. Itemizing everything helps you understand how much you can divert towards an emergency fund. How much you should save will depend on personal factors, including your job stability and lifestyle.
- Consistent savings is key
Regularly contributing to your emergency fund is vital. Financial advisor Sam Waltman suggests making it a fixed item in your budget and automating your contributions to ensure you consistently save.
