WEBVTT

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Want to know a powerful stress reducing

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secret , at least when it comes to

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money ? It's called an emergency fund ,

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and you should have one . Without an

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emergency fund , even a minor issue can

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take a major toll on your financial

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health . Think about it . Whether you

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suddenly have to deal with a flat tire ,

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a broken cell phone , or a sick child ,

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what's the one thing that helps across

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the board ? Money . Let's be honest ,

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being a new parent can be stressful

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enough . So having some extra money in

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the bank can really help . So because

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of this , you need to make building an

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emergency fund one of your top

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financial priorities . Here are 3 tips

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that can help . Tip one , save at least

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$1000 at first . Think fast . How could

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you quickly create a small safety

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cushion ? Maybe it's using a tax refund ,

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taking on a side job , or selling some

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of your stuff that you no longer need .

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Whatever it takes , get a $1000 safety

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net in place as soon as possible . That

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way you'll at least have some cash so

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that you don't have to go into debt to

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handle the financial emergencies that

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are bound to come your way . Tip #2 ,

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fine-tune your emergency fund to fit

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your specific situation . How much are

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your living expenses each month ?

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Multiply that number by 3 to 6 and

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you'll have your personal emergency

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fund savings goal . For example ,

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someone with $2000 in monthly expenses

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should work towards saving $6000 to

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$12,000 in an emergency fund . Likewise ,

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a family with $4000 in monthly expenses

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should target $1200 to $24,000 .

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Whatever your number , be sure to

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include saving for it in your monthly

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budget . And finally , tip number 3 ,

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and this one is critical . Do not touch

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your emergency fund unless it's an

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actual emergency . Wanting a family

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vacation or buying the hottest toy on

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the market doesn't count . And if you

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do need to touch your emergency fund ,

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make sure it's in an account that you

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can easily access without any penalties

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or fees . Savings or money market

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deposit accounts might do the trick and

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make it a priority to replenish those

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savings immediately . Remember , it's

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not if but when life will throw you a

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curveball with an emergency fund you

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can hopefully face life with less

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stress and more enjoyment . So don't

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delay , start building your emergency

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fund today .