Would you be able to come up with $2,000 if you found yourself in a pinch? Not even the biggest couch has that kinda coin hiding under the cushions. Take these five simple steps today to plan for tomorrow's unexpected expenses–and breathe easy. Money emergencies don't have to be so … emergency-like.
1. Set a Goal to Save at Least Six Months of Living Expenses For Emergencies
Take a close look at your budget. You have one, right? Look at the usual stuff—gas, groceries, the record store—and see where you can cut. Tunes or travel isn't an easy decision, but it's an important one.
2. Designate or Open a Savings Account
Let's break it down to a simple step. You can open a savings account for your emergency fund, even if you're starting from scratch.
3. Develop a Preferred Way to Access Existing or New Accounts
You can check your balances and monitor transfers from your phone or tablet. You're all about 24/7 access. It shouldn't be any different for your money.
4. Use Direct Deposit To Save
Split your direct deposit payment into multiple accounts. Put some of that paycheck into savings and the rest into checking. That way, your monthly bills are covered and you're preparing for emergencies at the same time.
5. Track Balances
Treating your balances like your Facebook feed, and checking in often, is a must. That's how you'll know if there's some excess money that could be dedicated to emergency savings.