The Importance Of Having An Emergency Fund

If you want to quit your job, be your own boss, travel the world, and be an internet entrepreneur… you NEED to be actively creating an emergency fund.  But first - what’s an emergency fund, and how much money should an emergency fund have?  An emergency fund is a bank account you can’t easily access that contains 3-6 months of your living expenses. So ideally this is in an account that takes a few days to transfer money to and from. You don't want to have checks, debit cards, or credit cards tied to this account so that you’re not tempted to blow this money on something stupid. Why is an emergency fund important? Well, after building an emergency fund, you can feel safe knowing that your next few months of living expenses are paid - even if the worst happens. And trust me my friends - bad things DO happen to good people in this world, and you want to be prepared for that.  For example, my dad worked at the same company for 30 years and he got fired right before his retirement benefits were going to kick in. Or you could get sick and not be able to work for a while, or get in an accident, or any number of things. Establishing an emergency fund makes you financially resilient and able to take a few hits and keep moving. And that’s just talking about personal risk. Even if you’re making money online in 2017, you have to realize - in the online world, things are constantly changing. You might wake up one day with your Facebook ads account shut down. Boom - there goes your lead generation for a month. Or you might get your Amazon account shut down - there goes an income stream. With all that being said - the main benefit of having an emergency fund is that it enables you to make better decisions that are based on the long-term rather than just hustling to get next month's rent money.  That's the difference between the abundance mindset and the scarcity mindset. The abundance mindset stays focused on the long-term while the scarcity mindset is focused on the very short-term.  The abundance mindset is also focused on giving without worrying about receiving. Trust me - that’s a LOT easier to do when you already have financial abundance in your life. This abundance mindset enables you to make much more creative decisions, to have a lot more fun, and to really sit down and think: “how do I want to make a positive difference in this world?” As far as my tips and advice for building a personal emergency fund - I’ll get into that more in another video, but for now, just remember that you have to pay yourself first. That means when you get a paycheck, you need to be taking at LEAST 5-10% and putting that amount into your emergency fund.  Do that each and every paycheck, and you’ll find yourself in a place of financial abundance sooner than you might think! If you are still looking for a way to start making money online, start with this video playlist: https://www.youtube.com/watch?v=-dKrVSM4HhU&list=PL0sOKzn__yK2h34nyz1QgZNJYTybUJPuv Know someone who would benefit from this video? Share it with them through this link: https://www.youtube.com/watch?v=IuFaGUV2q-I PS: If you want my videos as they are released, subscribe to the channel!