Wealth Management Services Is Incomplete Without Proper Emergency Funding Plan
Emergencies can knock at your door at the least expected moment and so for the same reason it become important for you to be ready for it and save well for the rainy day. Life is full of unplanned circumstances and if you are not prepared to handle the challenges you will get stuck in a bad scene. If you choose a financial advisor in Portland, Oregon. you will be surprised to know that they ask their clients to save for emergency fund as a part of their wealth management services first!
If you are the kind of the person who lives between paycheck to paycheck, it really becomes important for you save enough for the emergency situations.
Top tips to build your emergency fund are:
Start making small goals for your saving
According to different wealth management experts, it is much needed to have at least a saving, which can help you sustain for 3-6 months. It is easy to be said but, not that easy to do. It really takes effort to start making your savings. Some people set large goal which takes much time to achieve and eventually they get discouraged. So it would be better to have an initial goal which targets a specific need. Once you have reached that goal you can start targeting the next one. This will encourage you and keep you motivated.
Open an account for emergency fund
It would be recommended that you have a separate account for your emergency fund. Keep this separate from your savings for daily spending. With proper investment you will be able to enjoy decent interest on your money too. Keeping the money separate will ensure that it is not spend for other needs unknowingly.
Automate your deposits
Once you have the account now you must make sure that you automate your deposits. This way your money will be deposited to the account automatically. Moreover, by scheduling automatic payments you will not have to worry about money depositing and you will not be tempted to spend it elsewhere.
Add in some extras
Make it a habit to add in some extras into your emergency fund account. It is not necessary that you deposit any big amount to your account. The money can be your extra savings like cash back, rebates, cash gift, etc. Doing so will grow your savings and help you build your emergency fund at the earliest.In case you have been paying credit card or some loan earlier, you can now divert the amount to your emergency fund. Doing so will not hurt your monthly expenses but, soon you will find a difference in the total amount in your emergency fund.
Cut expenses and boost income
The next thing you need to do is to improve the cash flow. You can do it but, cutting down the expenses and clearing the stock which can bring in some money can be beneficial. You can go through the garage or closet and sell off the stock that you use no more. You will be surprised by the money you managed to earn this way. You can even take up some freelancing work in the free time and make some money.
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