From the course: 14 Things to Do When You Lose Your Job

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Bolster your emergency fund

Bolster your emergency fund

From the course: 14 Things to Do When You Lose Your Job

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Bolster your emergency fund

- When I work with clients on their financial plans, one of the most important parts of that process is understanding their cashflow. In personal finance, cash is king. You need cash coming in to pay your bills. If you lose your job, you need a way to replace that cash flow. This is where your emergency fund comes in. It can serve as a temporary way to cover your expenses when you lose your income and are looking for a new job. If you haven't been laid off yet but think it may be coming, you should start bolstering your emergency fund. If you have secure employment, I recommend having an emergency fund to cover a minimum of three months of your regular expenses. To calculate how much money you should set aside, look at your monthly bank and credit card statements and figure out how much money you spent in the last month. Multiply that number by three, and you have a good target number to start with. There are certain…

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