Do you have an emergency fund already built? Are you still trying to do so and find it difficult? Either way, it is understandable the discipline it takes to create an emergency fund. If you have done so, all the more power to you. If you haven’t done so, it is not too late, but you must understand the significance and importance of doing so. When you do, this will give you the push to start sooner rather than later. When you run a household or even if you are single, you need to have a financial buffer that will tide you over for up to six months when you have an emergency such as losing a job or a medical illness. The six months worth of finances will help to pay for your living expenses while you get well or try to look for a new job.


The Plan

After you build your emergency fund, though, what do you do next? You must have a plan. If you don’t have a plan for that money that you put away each week or month, you may end up spending it all. You have to be clear about how you will use the money when faced with an emergency. Or in other words, what type of emergency, the funds will cover? You must set goals so that you can be financially prepared for the unexpected. Let’s explore.


Credit Score

While you prepare for that unexpected situation, you need to improve your credit score. You may be wondering why, right? Having an emergency fund is fine, but without good credit score, you may have to end up spending all the money from your emergency fund when the emergency arises and then what? Do you have good credit to borrow money if you need to? In addition, to keep your emergency fund intact, you will need good credit to use for big purchases such as a home or an automobile when needed. If you find yourself with large credit card balances, try to pay if down or pay it off to improve your credit score.


Your Retirement

Just as you prepare for an emergency, you have to take some of the same steps to prepare for your retirement. That means, you also have to put money away in a retirement fund such as an employer sponsored 401K. It is important to take advantage of this, especially if your employer wants to match your savings amount. If you are relying on social security to provide the financial security that you need during retirement, you are dreaming. Take control of your retirement planning and objectives. However, be prepared to curtail your spending habits in order to save for retirement.



Yes, it is money talk again. However, you must think of ways that you can invest some of your salary instead of just shoving it all in a savings account. Your money will hardly grow much interest. If your credit is good, you could think about investing in property and renting them. The rent would help to pay for the mortgage and other expenses. If you are not a savvy real estate investor, stick with what you know or seek the help of a professional and always do your research.