Marshmallows and Money Podcast

#009: How to Plan for Emergencies When You're Broke

March 11, 2021 Gina Zakaria Season 1 Episode 9
Marshmallows and Money Podcast
#009: How to Plan for Emergencies When You're Broke
Show Notes

Emergencies are inevitable. They happen to all of us and there is no rhyme or reason or even a heads up when they  happen. 

Part of having complete financial security is to have an emergency fund that holds 3-12 months of your living expenses ready to serve you when you need it most. 

It's one of the best things you can do for your financial wellbeing and it's a game changer to staying out of debt when an emergency arises. 

Be part of the smart crew and do what you can right now to save for the inevitable so you can avoid the struggle when an emergency strikes. 

Here are some things to consider and action steps you can take to save for emergencies when you're broke and living paycheck to paycheck:

  • How much should your emergency fund have?
  • Understand what your emergency fund should cover (job loss, illness, natural disaster) Doesn’t include unplanned events or home maintenance (there should be a separate fund for that)
  • Get consistent, make it a habit- even if it’s smaller payments per week
  • Include it in your budget
  • Set up a spending freeze and deposit that money into your e-fund
  • Separate your emergency fund from your regular savings account

Check out these helpful resources if you need more guidance on paying off debt, saving money, or perfecting your budget. 

Grab the Printable Budget Binder if you want to get organized with your money and finally take back control of your finances.