One of the most important things you can do when you start financial planning is starting your emergency fund. If you listen to people like Dave Ramsey, he will tell you to have 3-6 months worth of expenses built up in your emergency fund. We tend to like having 6-12 months, but it really just depends on the individual and what their situation looks like. It's always a good idea to prepare for the worst, so having a little more saved up will never be a bad thing. Take this last year for example, no one expected COVID to hit, but it did and a lot of people lost their jobs. If those people had a nice emergency fund saved up, it probably didn't affect them as much, because they could start looking for another job and not have to worry about having enough money to put food on the table. If someone lost their job with no emergency fund, then they might have had to take out a loan to afford their house payment. Having an emergency fund ready is one of the best things you can do, so watch this video to gain a little more clarity on this concept.
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