How to set up an emergency fund in a recession

Make hay while the sun shines, they say...Nobody tells you what to do when the sun starts to dim and you haven’t gotten "enough hay."

Maybe this will help.

An emergency fund is a savings account set aside for unexpected expenses, such as a job loss or medical emergency.

With the recent increase in the report of lay offs left and right, due to the state of the global economy

it's especially important to have an emergency fund now more than ever

Here are some steps to set up an emergency fund:

Determine your goal: Don’t start any journey without a destination, you will either forget why you started, get distracted or worse get tired

Decide how much money you want to save in your emergency fund. A general rule of thumb is to save three to six months' worth of living expenses.

Set up a separate account: gather here if you have ever started saving for a rainy day and then it started raining the next day,?

Leave no room for temptation Open a separate savings account for your emergency fund, ideally one that is difficult to access, such as a high-yield savings account or a certificate of deposit. You will find just the thing with rapaid.africa s fixed savings accounts?

Automate your savings: We know the spirit is willing but the flesh is weak, after reading this you might be pumped up, so make use of that energy while you have it

Set up automatic transfers from your normal account to your emergency fund account on a regular basis, such as every paycheck.

And last but not least;

Be prepared to build back your emergency fund:?

In a recession, emergencies happen everyday, so don’t be surprised if your emergency fund gets depleted ,hence it is important to rebuild it as soon as you can.

Review your budget and look for ways to cut expenses, so you can save more money for your emergency fund.

Remember that building an emergency fund takes time and discipline, so be patient and stay committed to your goal.