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These are truly uncertain times across many avenues in the nation. From political upheaval to an unsteady job market, there are many people worried about employment security and economic downturns. With this in mind, it is imperative to “layoff-proof” your finances to ensure stability for what lies ahead. This includes reducing your existing debt, along with building a fund for unforeseen circumstances and emergencies. With more job loss than ever before, you must be able to protect yourself and your loved ones across the board.
Building an emergency fund is essential for families or singles. In fact, this is a form of recession and layoff-proof savings, which does not have to be hard to implement. In the event of job loss or natural disasters, you must have a steady flow of income to maintain living expenses and necessities. Similarly, you need ready cash for any medical emergencies, as well as “cash on the barrel” payments without using credit or debit cards. With this in mind, here are some ways you and yours can build a sound, emergency fund:
It can be difficult saving for rainy days with existing debt. With this in mind, always pay off the smallest balances first with credit cards. This makes it more manageable and leaves you with enough money to store away. Similarly, allocate enough money for bills and expenses, but do not use credit cards while you are paying them off.