Understanding Your Spending Habits
Before you even think about saving, you need to know where your money goes. Track your spending for a month or two. Use a budgeting app, a spreadsheet, or even a notebook. Categorize your expenses (groceries, entertainment, transportation, etc.). This will highlight areas where you can cut back and free up money for your emergency fund.
Setting a Realistic Savings Goal
Aim for 3-6 months’ worth of essential living expenses. This means the money needed to cover rent or mortgage, groceries, utilities, transportation, and debt minimum payments. Don’t include luxury items. Starting small is okay. If
