Three Steps to Rebuilding Our Emergency Savings

If any of us ever doubted the benefits of having an emergency savings account, those doubts are over. Few of us, if any were left untouched financially by the COVID-19 pandemic and most of us have to draw deep into whatever savings we had managed to set aside for this rainy day. So, what do we do now? If we have been fortunate enough to maintain employment or find new employment, then it is time to think about rebuilding (or building) our emergency savings account. Experts recommend our primary savings oil should be setting aside enough money to cover one month of expenses. While this goal may seem daunting, it can be accomplished one dollar at a time. Let's break the process down into three different steps.

1) Look for ways to shave off a little from our discretionary spending. Think groceries, entertainment, and grooming expenses for places we may be able to take off a could of dollars without missing them too much.

2) Next, set aside this money we have siphoned off into a separate emergency savings location, like a savings account named specifically for this purpose. It's not a great idea for us to leave our emergency savings intermingled with our normal checking account. It will be too tempting to spend it.

3) Lastly, watch out emergency savings grow. Seeing our balance increase on a regular basis may motivate us to look for new ways to grow the balance. We man eventually even save enough to cover several months of our expenses.

In conclusion, it's really important we set aside little bits of our money into a rainy-day fund and carefully add to its growth. Rainy days com for all of us, but we will feel more prepared for them by planning ahead.

-Written by: Financially Fit Me Founder Kimberly Greenman-