Part 6/9:
The first liberating action I took was to establish an emergency fund that could cover six to twelve months of essential expenses. Knowing I had that financial buffer relieved immense pressure. A few practical suggestions for creating this fund include:
Short-term Sacrifices: Like many, I worked longer than I wanted in order to amass enough savings.
Chunk Goals: Break larger savings goals into more manageable targets. Instead of shying away from a $10,000 savings goal, aim for a daily saving of approximately $27.
Start Small: I initiated a free “1K Savings Challenge,” helping others achieve savings without extreme sacrifices.
Step 2: Analyze Income and Expenses
Next, I realized the importance of balancing both income and expenses.