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2. Build an Emergency Fund
A crucial aspect of financial security is having three to six months of essential expenses set aside in a liquid, accessible form. While savings accounts may feel mundane, they serve as vital buffers when unexpected financial challenges arise.
3. Manage Your Expenses
Keeping must-pay expenses, such as mortgages and car payments, manageable is vital for financial stability. Reducing debt as much as possible enables greater flexibility when unexpected challenges arise.
4. Organize Legal Documents
Early preparation of legal documents—like wills and durable powers of attorney—is also critical. These ensure that someone can manage your affairs and make decisions on your behalf if you become incapacitated.