Ready? Now that you’re basically a savings pro, let’s get it down on paper while it’s still fresh. Answer the following questions (do it over a few days if you need to mull things over), and keep your responses handy so you can refer back to them when you need to.
Set? Run The Numbers & Save
Using the 3-6 months of committed expenses target, how much should you have in your emergency fund?
How much do you have?
Given the 10-15% of gross income target, how much should you be saving each month?
- How much are you actually saving?
- What can you do to save more if you need to?
- What goals do you have for which you might set up separate accounts?
- Emergency Fund
- Car Down Payment
- Major Purchases
- What is your accountability strategy to save more prudently?
SAVE! Now that you know why and how you need to save, how are you going to hold yourself accountable to save with more purpose? More gusto, as they say? How will you help yourself follow through on your commitment to save? Sure, it takes discipline and mental toughness. But, you’ve got plenty of both.