Andy Gupta shares his tips on saving money for an emergency, and it starts with $50.
Hi, this is Andy. So I just read this scary statistic this morning that 53% of Americans don’t have money saved for an emergency. And part of this is because no one has ever taught us how to save for an emergency. And look, right now with the chances of recession high, you want to start building an emergency cash reserve of six to 12 months of expenses.
Here’s a strategy to start doing that. Carry a notebook around with you for the next 30 days. Let’s do small increments; do for the next one week. Carry a small notebook and a pen, and just jot down every time you spend money. Jot down even if you swipe a credit card, if you’re paying by cash, just make a note of everything that you’re spending on. Take a look at your credit card statements for those automatic billings that are happening; subscriptions that you don’t even see where you’re not actually pulling out a credit card. Start noting those down.
So pull up your credit card statement for the last 30 days, and now carry a notebook in your pocket and jot down every single time. Do it for a week. You’ll feel a win. I really want you to do it for a month. Come back and take a look at how you’re spending your money. I think you’re going to be surprised at where you are spending money that you can start cutting down. My goal for you is to start saving $50 a month. Start with $50 a month and see where you go.
Looking for more financial tips? Visit our Insights page.