Before we get started, I want you to know that I’m not financially free yet!, but I’m on my way.
Get financially free is something that everyone wants, but only a few people are willing to put in the work. Getting started with your journey to financial freedom can be easier than you think, believe me.
Over 60% of Americans don’t have enough money in their bank account to cover a $1000 Emergency which is very bad. No one wants to be in a situation where you don’t have money to solve any problem in life. Continue reading if you want to feel secure about your finances.
Every person that wants to achieve financial freedom has to have an Emergency Fund. What is an Emergency Fund?; It is a money fund big enough to cover your expenses from 3 to 6 months or even more, and it has to be liquid, that means that you can have access to that money immediately. Places, where you don’t want your E.F., is in CD’s or any long term savings account because this is an Emergency Fund and you want that money to be there for you in case you need it.
The best way to save up for your E.F. is to set up an automatic withdraw from your main bank account to a high-interest account so every time you get paid a certain percentage of your money gets transferred into your E.F. account.
I would recommend using a high-interest account so the inflation doesn’t eat you alive, you should know that every year your money has less value. This devaluation comes to approx 3% every year which doesn’t sound like a lot but it is.
If you feel like you don’t have money to make this work you’ll have to find those unnecessary expenses. That could be like eating out, entertainment, clothes or whatever you think you’re overspending on.
Everyone can cut their expenses, but if you don’t what to do that you can increase your income instead. But remember that you are free to decide how fast you want to build up your fund, in my case, I deposit 10% of my income to my E.F. account.
Just get started it doesn’t matter if you start saving just 1 or 2 percent of your income, the only thing that matters is to take action right now.
I hope this helped you, I’ll be answering your questions down below in the comments section, any feedback is welcome.