Anyone with income over $1,000 must have an emergency fund.
at least that money specialist And TikToker Lily believes.
Most of his videos explain how to make a budget and why it is important.
she also offers budget templates For anyone who wants to work for them, all for less than $6.
Lily recently started the series “Budget for Beginners” on TikTok where she talks about the proper way to save.
his most recent videoLily shares some tips on emergency funds.
He has two savings accounts: a personal savings account and one for emergencies.
A personal savings account can be for things like housing, retirement, college or any other long-term goals you have for yourself.
However, the focus of Lilly’s video was to demonstrate the importance of an emergency fund and the importance of keeping a reasonable amount away.
Many financial experts have said that $1,000 is sufficient.
Lily says the opposite.
He suggests that three to six months of savings is best to cover the expenses.
This would be used for things like job loss, death in the family, and any home or car issues.
Such large expenses usually cost more than the $1,000 that some experts recommend.
For those wondering where to put this money, the budget expert shared that she keeps some cash in a safe, but the rest in a high-yield savings account (HYSA).
A HYSA is traditionally used for an emergency fund or other savings goals.
They allow savers to reach their financial goals faster by giving them higher returns.
This means whenever you deposit money in your account, the bank gives you interest.
More Budgeting Tips
In part One In her Budget series, Lily explains how to start the process.
The first step before you start is to evaluate your spending habits.
This may take some time.
She suggests taking an hour to print out and review your last three bank statements.
It will show you how much you are spending from month to month and if your spending fluctuates.
Next, put your spending into different categories like rent, bills, groceries, gas, pets, and any others.
Once you have your categories down, go through your complete bank details and assign them accordingly.
Then you add up each category for all three months and compare how you’re spending.
It’s also a great way to find out what’s needed and what you can do less.
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