LAS VEGAS (KLAS) — The coronavirus pandemic has demonstrated how vital an emergency fund is for every American, but the question is: How do you start saving to build a nest egg?
Experts say it would be great to have six months worth of one thousand dollars saved up, but first, let’s tackle the first one $1,000.
First step: Take a good look at your expenses and where you can cut money from, such as your eating out or online shopping expenses.
Second: Look around and compare to see how you can save on car, home, and renters insurance.
The founder of Insurify says on average, consumers can save more than $400 on their insurance premiums by shopping through her company.
“It’s an online platform, free to use, takes two minutes, to complete their form, and compare from over 60 carriers in one place,” said Snejina Zacharia, the founder, and CEO of Insurify.
Once you’ve created your budget, allocate an amount that you can save every month, and stick to it.
“The most important thing about the emergency fund is to keep it in a separate account,” Zacharia said. “You will be tempted to use it, but in a diff account. “You can always truly use it as an emergency.”
Zacharia also adds once you’ve saved up your first $1,000, start working on your second thousand.