Suze Oman says this is ‘the most important part of your financial base’

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This tip can make a big difference in your finances.

Key Point

• Financial stability is an important goal, and for that we need to build a solid foundation.
• Suze Orman says emergency funding is essential to build that foundation.

Financial security is a dream come true for most people, but it is within reach. You don’t have to worry about how to pay your credit card bills or what to do until your next paycheck comes when your bank account is empty.

But if you want to be safe, you need to build a solid financial foundation. Her financial expert, Suze Orman, provides key tips on how to do that.

This Suze Oman’s advice will help you lay the foundation for a secure future

So, according to Orman, how can we ensure financial stability?

“I’ve said this for years, and I’ll repeat it again. The most important part of our financial base is the emergency fund,” Orman said.

Orman recommends setting aside enough money to cover 12 months of living expenses, but she knows it will take time to save that much. By investing heavily in a high-yield savings account that gives you access to money, you can be prepared “for whatever the economy throws at you in the coming months.”

Why is an emergency fund so important?

Aumann is perfectly spot on when he describes the emergency fund as an important part of the financial base. The basic reality is that emergency funds allow other parts of money management to function effectively, avoiding the types of disasters that can derail money from building economic goals and financial freedom. that it can be avoided.

See, it’s much easier to stick to a budget if you have money set aside for emergencies. If unexpected expenses occur that you didn’t plan for, you won’t be able to drain your bank account or go into debt for more than your pre-determined spending amount.

Having an emergency fund can also help you avoid going into debt when unexpected expenses arise, even if they are large. If an unexpected illness hits you with medical bills or you have to pay for an expensive car repair, we’ve got an emergency fund so you don’t have to reach for your credit card.

Having 12 months of living expenses in the bank also avoids bigger disasters like foreclosures and foreclosures. If you lose your job and it takes time to find another one, you can still pay your bills.

For all these reasons, it’s easy to see why an emergency fund lays the groundwork for your financial life to thrive. won’t You may get off track in the face of a potential financial crisis, but the peace of mind that you can invest to grow your wealth, knowing you won’t have to pounce on your investments when sudden expenses arise You can also get a feeling.

It is very important to listen to Oman on this issue. So, if you don’t already have a large emergency fund, you should start saving as much as you can by opening a high-yield savings account. Little by little, you’ll get closer to a fully-funded emergency savings account that will lay the foundation for your secure future.