I’m willing to bet you don’t have a budget if you are in this mess – and if you do, you certainly are not following it. The word “budget” was previously a curse word in my family, but over time we have come to embrace it.
By setting up a budget and setting up your emergency savings, you can kick life back when it tries to bully you. This emergency saving will protect you from many of life’s unforeseen financial struggles.
These credit cards, student loans, medical bills, car payments **insert other debts here** have been around for far too long. This is where you bear down and take your life back – by destroying one debt at a time.
Let’s set ourselves up for success rather than failure. By quickly saving up 6 months of living expenses – just the bare minimums needed to live each month – we can account for some of life’s worst-case financial scenarios.
18% has worked well for me and will set me up very nicely in retirement – I recommend you do the same. If you can afford more, then put away as much as you can while still enjoying life in the process.