Flourish - eMag - Mar 25 - Flipbook - Page 52
How
Much
Should
You
SA
VE
?
1. Set a Savings Goal
inancial experts
recommend
saving enough
to cover three to six
months of essential
expenses, including
rent or mortgage
payments, utilities,
groceries, and
transport. If that
sounds daunting, don’t
panic. Start small and
work your way up.
Even a modest fund
of $1,000 can make a
big difference when
life throws you a
curveball.
Getting
Started…
Calculate your monthly essential expenses and multiply that
by three to six. This 昀椀gure will be your ultimate savings goal.
If that feels overwhelming, break it down into smaller, more
achievable milestones.
2. Open a Separate Savings Account
Keep your emergency fund separate from your day-to-day
spending account. A high-interest savings account or an
offset account linked to your home loan is ideal—you want it
accessible when you need it but not so accessible that you’re
tempted to dip into it for non-emergencies.
3. Automate Your Savings
Set up a direct debit to transfer a 昀椀xed amount to your
emergency fund each payday. Automating your savings
ensures consistency and removes the temptation to spend
the money elsewhere.
4. Start Small
If money is tight, start with a small, manageable amount. Even
$50 or $100 a month adds up over time. The key is to build
the habit of saving regularly.
5. Cut Back on Non-Essentials
Take a closer look at your spending and identify areas where
you can cut back. Could you skip that takeaway coffee a few
times a week or reduce your dining out expenses? Redirecting
these savings to your emergency fund can accelerate your
progress.
