One of the best things you can do for your personal economy is to start an emergency fund.
Your emergency fund can help protect you against financial setbacks, since it provides you with a little extra cushion to draw on. Rather than turning to debt, you can use money in your emergency fund to cover unexpected costs.
Experts recommend that you save at least six months’ worth of expenses in an emergency fund. So, if you spend $3,000 a month, you need to have $18,000 in an emergency fund.
Notice here that I’m talking about expenses and not income here. What you need to save in an emergency fund is money to cover what you normally spend in expenses each month, not how much you make.
Anyway, that’s a daunting task.
How can you get started when you have that huge amount of money hanging over your head?