Keep your emergency money in an FDIC-insured bank account so it’s completely safe. But the best way to ensure you’re ready when lousy luck strikes is to prepare for it today. I know saving isn’t as much fun as splurging. But the trick to building a healthy cash reserve is to save when times are good diligently.īefore you book a vacation or buy a coveted luxury item, make sure you have plenty in the bank. If you get a raise at work or have a profitable year in your business, it can be tempting to spend the excess.

If you don’t have a financial cushion to fall back on, a setback could force you into debt and take years or decades to recover. Having savings is one of the best tips for financial success because it protects you from hardship, such as having a significant unexpected medical expense or losing your job or business income. It should be a top priority, so you’re never backed into a corner, financially speaking. If you’ve been following the Money Girl blog or podcast, you’ve probably heard me discuss the importance of building a cash reserve, also known as an emergency fund. If you don’t have time to create an additional source of income, could you ask for a raise or promotion at work? Taking a higher-level job may be the ticket to earning more or staying as relevant as possible to your employer.

What interests do you have that other people would pay for, such as online tutoring, gardening, driving for rideshare apps, caring for pets, or writing? Not only does an extra income stream help you pay the bills and eliminate debt faster, but it allows you to stay safe if one of them dries up.Ĭonsider how you can use the skills you already use in your job to create a profitable side business. Protecting your income or creating additional sources of income is probably the best thing you can do for more financial success. Protect your ability to earn an income.

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