This final of four columns is sponsored by Mason Financial. Contact them to book your free budget consult.

Avoid financial stress: save up for emergencies

You need an emergency fund! Unexpected situations happen. Be prepared, start saving today!

Your goal: save enough money to cover 3-6 months of living expenses. That seems like a lot, so start small and build up.

Many Canadians are unprepared for unexpected expenses:

• 57% of Canadians said they would use savings to pay for an unexpected expense of $500.*
• 31% would use savings to pay for an unexpected expense of $5,000.*

By using your savings in case of emergency, you won’t have to resort to expensive credit options.

Six steps to save up for emergencies:

1. Start with a realistic amount.
2. Make it a weekly habit.
3. Cut an expense and save the $.
4. Automate your savings.
5. Check your progress regularly.
6. Increase your weekly savings.

Managing Money and Debt Wisely: It Pays to Know!

Find helpful tools and resources at Canada.ca/Financial-Literacy-Month.

Resources

• Mason Financial

Related

• Four in ten millennials own their own home: HSBC study
• Financial Literacy: Have a savings plan
• Financial Literacy: Know your rights
• Financial Literacy: Live within your means
• Financial Literacy: Start with a budget
• November is Financial Literacy Month
• It’s that time of year: RRSPs versus TFSAs