Building an emergency fund is a crucial step in establishing financial security for your household. Like it or not, we all encounter unexpected expenses, whether they be from an appliance breaking or major lifestyle changes. Here are some tips to help you get started and build an emergency fund:
Set a savings goal
Determine how much money you would like to save for your emergency fund. It is generally recommended to aim for three to six months' worth of living expenses. This will provide a cushion to handle unexpected financial emergencies.
Make it automatic
Set up an automatic transfer from your checking account to a separate savings account for your emergency fund. Automating the process ensures that the money is consistently saved without relying on willpower alone.
Start small & and be consistent
If saving a large sum seems overwhelming, start with small contributions and gradually increase them over time. Consistency is key. Even saving a small amount regularly can add up over time.
Save windfalls & extra income
Whenever you receive unexpected income, such as a tax refund, a bonus, or a gift, consider putting a portion or all of it into your emergency fund. It's a great way to boost your savings without impacting your regular budget.
Keep it separate
Maintain your emergency fund in a separate savings account, preferably one that is not easily accessible for day-to-day spending. Keeping it separate will reduce the temptation to dip into the funds for non-emergency purposes.
Remember, building an emergency fund takes time and discipline. Stay committed to your savings goals, be patient, and celebrate each milestone along the way.
About the Author
Rudden|Bobruska Team
Gary Rudden, Lisa Rudden, and Nick Bobruska
RUDDEN BOBRUSKA TEAM
What sets your team apart from other real estate teams?
There is no team out in the market that offers what we do. All of us are Realtors, but
we each have specialized roles, which make our team so unique!
After decades of living and selling real estate in the DMV, we have established
ourselves as one of the top real estate teams with our market expertise and
cutting-edge technology. Our savvy high-tech marketing is on every website
and social media source. We have a huge network with other top agents, which
helps to premarket homes and discover homes for buyers before they reach the
open market. Our services include professional in-house staging services, broker
expertise in negotiating and navigating contracts, and buyer representation in all
price ranges. Each client has different needs and we create a marketing plan based
on those needs.
Our most distinct feature is our in-house construction and renovation team. We
are literally a full-service, one-stop shop when selling or buying a home!
How does the in-house construction and renovation team work?
All work is managed and completed through our licensed and bonded construction
crew. No need to call outside contractors. We are like “HGTV,” but we just don’t
have a show! Whether it’s a small makeover or a major renovation, we do it all. Our
sellers love this aspect of our team because we make preparing your home for the
market so seamless. Our buyers love the advice and insight we can give for future
renovations and repairs.
Having a licensed Maryland Home Improvement contractor as part of our team
along with the knowledge, experience, commitment and services that we offer, truly
puts our team as a vanguard in the real estate industry.