Thread by @tayooye

This week:

Start building your emergency fund (a THREAD)

Your emergency fund is 3X your monthly expenses. If you spend $1000 a month, your emergency fund is $3000.

Your emergency fund will help you survive life's uncertainties without needing a loan.

#ThisWeek

Save aggressively (30 - 60% of your income) until you have 3 months living expenses.

Emergencies happen: prepare before it does.

Simple emergency fund plan:
1. Save it.
2. Keep it in a low risk investment.
3. Spend it ONLY on emergencies.
4. Replace it after using it.

Emergencies:
1. Job loss.
2. Car malfunction.
3. Sickness.
4. Accidents

Non emergencies:
1. Food & drinks
2. Rent (you should have a separate savings plan for your rent.
3. Parties
4. Tuition (separate savings plan).
5. Living expenses.

Don't touch it unless it's an emergency

Feel free to ask me questions about emergency funds via comments.

I will answer as many as possible.

#ThisWeek start building your emergency fund.

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Have a great week ahead.

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