Tips from Rani Jarkas on How to Build an Emergency Fund
The mid-20s and early 30s are typically a time of financial instability. You might be starting your career, working towards paying off student loans and dealing with other unexpected expenses. In times like these, it's important to have an emergency fund to fall back on.
Rani Jarkas knows this all too well. Currently, the Chairman of Cedrus Investments, Rani Jarkas, has over 20 years of experience in the financial services industry. He's seen firsthand what can happen when someone doesn't have an emergency fund. That's why he's sharing his top tips on how to build one:
Create a budget plan
The very first step to creating an emergency fund is understanding your expenses. Track where you spend your money for at least one month or two. This will give you a clear picture of your regular expenses so you can start setting aside money each month specifically for your emergency fund.
Plan for irregular expenses
In addition to your regular expenses, you also need to account for any irregular or unexpected expenses that might come up. This could include anything from car repairs to medical bills. Once you know how much these expenses might cost, you can start setting aside money each month to cover them.
Start an emergency fund.
Now that you have a clear picture of your expenses, it's time to start setting aside money for your emergency fund. If you have an unexpected financial setback, it's recommended that you save three to six months of living expenses to get back on track easily.
Maximize employee benefits
Make sure to do your research about employee benefits before committing to a job. There are often many perks that come with working at a company that can greatly improve your quality of life.
Insurance
Finally, one of the most important things you can do to protect yourself financially is to get insurance. This will help you cover any unexpected medical bills or other unforeseen costs. The most significant perk of buying health and life insurance is that premiums are usually low.
Following these tips from Rani Jarkas, you can easily build up your emergency fund and protect yourself from financial instability. Good luck, and remember, save up!
