Part 7/8:
Building an emergency fund that covers three to six months of living expenses is crucial. This financial cushion grants peace of mind and assures that sudden shocks, like job loss or unexpected bills, won’t lead to a downward spiral.
Step 5: Start Investing Early
Investing should begin as soon as feasible. The power of compound interest means that the earlier you start, the greater your returns can be. Invest a percentage of your income regularly, increase it over time, and take advantage of employer-sponsored retirement plans. Even modest, consistent investments can yield significant wealth over decades.