Episode 2: Emergency Funds

Key Takeaways:

  1. Begin a savings account or money market account.
  2. Plan to save up to and beyond 3-6 months worth of what your monthly living expense.
  3. Living expense=bare necessities, like food, shelter, utilities, transportation, child needs and medicine.
  4. Set up a direct deposit from your paycheck into a savings or money market so that you never see the money in your spending account.
  5. Store your money in liquid cash, such as a savings account that you can take money out of when you need it, not into a retirement account or home equity.