Building an Emergency Fund should be a priority in the budgeting process. Two fundamental questions need to be answered at the outset. How much money should you have in your emergency fund? Once this goal has been ascertained, how should you proceed to achieve this goal?
Using your total monthly expenses is a good place to start. If the monthly budget for your family is $5,000, then the goal would be a multiple of three to six months or $15,000 to $30,000.
This amount may seem daunting and impossible. Start by selecting an interim goal of $1,000 by a specific date. When this is achieved determine new goals to allow you to measure your progress.
Selling unneeded items at a garage sale or online creates cash and provides motivation to continue. Contributing so much per pay check thereafter can keep the fund building until your final goal is realized.
Today is the day to start.