Emergency Savings

Everyone talks about saving for an emergency.

Lets talk about how you can achieve this:

Emergency fund has to be liquid, but nost too easily accessable, the tax free savings account can be used for keeping the funds until you need it. An emergency fund can stop you going into credit card debt.

1. Pay all other expenses first, even if there is only $20 left over after everything is paid, the money can add up over the year.
2. If you get a bonus at work or get a tax refund use it to add to your savings.
3. Get the bank to take out a reasonable amount every month, even if it is between $100-$200 each month, it easily adds up and you will not miss it.
4. If your income varies from one month to another, use the percentage rule and transfer that amount out of your account to a savings account.
5. When you get started with this emergency fund, it will give you peace of mind and if you don't use it, it will be there if you need a new car or a down payment on a property you always wanted to buy.