If 2020 didn’t teach us anything, it taught us the importance of having money set aside for emergencies. Many of us were not financially prepared for the pandemic or for the impact it would have on our lives, lifestyle and livelihood.
Now more than ever, we need to be prepared for life’s emergencies.
Some call it an emergency fund. Some call it a rainy day fund. My mom calls it “Shame Out Your Eye Money”. I call it a S.T.A.S.H.
Here’s everything you need to know about saving your first $1,000.
What is a S.T.A.S.H?
- Savings
- That
- Are Accessible for
- Situations &
- Hardships
A STASH is money you’ve set aside for EMERGENCIES. Emergencies are classified as unexpected, necessary, urgent life events.
Why do I need a STASH?
You need a STASH simply because you have to be prepared for when life hits you. And we all know when life hits, it hits like a ton of bricks. Your STASH will lighten the load.
How much do I need in my STASH?
It is important to keep a STASH of at least $1,000 at all times. Eventually your goal should be three to six months worth of your expenses, but start with the goal of $1,000.
Where do I keep my STASH?
Your STASH should be in a place where you can access it quickly and easily. Try a savings account, money market account or save cash in a safe place. Wherever you choose just make sure you can pay for an emergency quick and easy.
How do I build my STASH?
Having a STASH will keep you from having to beg or borrow when something happens. Here’s how to do it:
- Manage your income
- Write down your Income
- Write down your Bills (including due date)
- Calculate your Bare Minimum Budget
- Manage your spending
- Track your Spending
- Adjust your Spending
- Set a Payday Savings Goal
- Select a place to Save
- Calculate how much to save per payday
- Start Saving
- Visualize it
- Use a visual savings tracker to stay motivated
Should I invest my money before I save my STASH?
Before you consider investing in stocks or paying down credit card debt, you have to have a S.T.A.S.H. of at least $1,000. No exceptions! Investing and paying down debt is important, but not more important than being prepared for an emergency.
Can my STASH be a credit card?
No. Since our goal is always financial freedom we don’t want to go further into debt when emergencies happen (which they will).
When can I use my STASH?
A STASH is money you’ve set aside for EMERGENCIES. Emergencies are classified as unexpected, necessary, urgent life events. Use your STASH for job loss, car repairs, medical emergencies, home repair and any other emergency.
How do I keep track of my STASH?
Use a visual tracker to help keep yourself motivated through your journey. Get the tracker here.
