Emergency Funds - Safety Net

Now I know everyone you've ever heard of. If they asked what to do in an emergency, very quickly respond, I'd just put on my credit card a thousand dollar emergency. In Australia, the stats are showing 28% of us wouldn't be able to handle a thousand dollar emergency. One thousand dollars is not a lot of money these days and plenty of things can happen to cause a thousand dollar emergency. But, but literally one in four of us wouldn't be able to handle that financially. It would be catastrophic. So what this is saying is we're actually not putting away any money to save. We're spending what we're earning and some. And so what I'd love you to look at doing and focusing on over the next month or two is how do we actually create a savings emergency account? So if there was $1,000 emergency, which will happen, emergencies happen to all of us, we should be prepared so that they're not emergencies and they don't affect us financially there. So what we've really got to focus on is building up three months worth of savings for loan repayments and living expenses. So you want to create three months worth of living expenses and loan repayments in savings in one account. Once you've got that safety net or emergency fund, any emergency that comes your way you can totally handle. You'll never ever be caught off guard, whether it be having to fly internationally to see a sick relative or interstate to see your parents. It's one of those things. By having that emergency fund, what it does for you on a subconscious level, it gives you that feeling of bulletproofness. And as a result, thoughts become things. All of a sudden you're not scared of any emergencies or anything that may be untoward financially happening to you. You won't attract them and you'll be moving forward each and every day. So focus on building up three months worth of living expenses and loan repayments in one account. And as a result, you will literally be bulletproof on a financial scale.