Your buffer size depends on your income, essential bills, and how long you can live without one income if you are in a two-income home.
It’s important for you to keep track of how much money is coming in and where it’s going out so that you can spot any problems before they become serious.
To ensure quick access to emergency savings, you may want to consider opening a second bank account. That way, you can quickly use the money in an emergency situation.
Don’t borrow money to cover an emergency expense—that only makes things worse in the long run and leaves you in debt.
These policies can not only help shield you in the event of a financial emergency, but they can also make the cost of them much less than if you didn’t have them.