No. 2: Have some cash on hand for emergencies
Next, be sure you have a fully loaded emergency fund, and if you don’t, set one up — and fill it with at least three to six months’ worth of living expenses. That means not only housing and food costs but also utilities, transportation, taxes, home maintenance and repairs, insurance, expected healthcare expenses, and so on. A job loss can hit unexpectedly, as can a sudden costly health setback or a broken transmission, and finding a new job or being able to make some extra money can be harder than usual during a recession — not to mention a pandemic. Think about some ways to spend less, too, in order to help you save for emergencies.