With rising prices, setting aside cash for an emergency fund seems tougher and a bit overwhelming. The recent September consumer price index report highlights a price increase across various goods and services, showing that inflation isn’t decreasing, despite interest rate hikes by the Federal Reserve.
However, there are straightforward strategies for those aiming to grow their emergency funds. Here are a couple of steps for kick-starting or boosting your savings:
- Nail down your spending details
Get a grip on your monthly household costs by laying them out in a spreadsheet. Lori Gross, a financial advisor, suggests listing everything from rent to vacations. This clarity is essential for figuring out how much you can save for retirement, education, long-term care, and rainy days.
- Automate your savings habit
Don’t just add to your emergency fund when you remember. Sam Waltman, a wealth advisor, recommends making it a non-negotiable part of your budget. Decide on an amount and set up your banking to transfer it regularly to a savings account meant just for emergencies.
Want the rest of the tips? Right now is a good time to make sure you’ve got an emergency fund…
