5 Ways to Establish a 1-Year Emergency Fund

It’s not a race; it’s a (quick) marathon

Photo by Richard R. Schünemann on Unsplash

The average American can’t cover a $500-$1000 expense.

If they can cover it, it’s usually in the form of a credit card.

Debt is the primary way we fund planned and unplanned expenses, which can get pricey.

The longer you continue on this path, the more challenging it becomes to get out of debt.

It’s not impossible, but you’re creating a mountain instead of a hill.

The only way to shift the pattern of using debt to fund your life and emergencies is to start spending less than you earn.

The Five Ways I Established 1 Year of Expenses

1. Determine what amount I need to save.
2. Decrease my expenses.
3. Increase my income.
4. Continue investing.
5. Save ferociously.

#1 Determine the Amount

You’re going to need to ask yourself a few questions before you start the process of funding your 1-year emergency fund:

• First, what is the monthly cost of your expenses?
• Second, is this number the lowest amount of expenses you…