Before you think of mutual funds, ETFs, Gold or stocks, setup a ‘Starter Emergency Fund’ for your family. A starter emergency fund should be able to handle all expenses of your family for a month.
Now, experts will laugh about the ‘one month’ part of the plan. But trust me, this will be the first ‘quick goal’ that you can achieve and will provide you the necessary positive mindset to launch yourself into more long term goals.
Now, make a like of all expenses for a month. This should include groceries, household items, medicines, doctor visits, school fees, transportation, fuel, loan EMIs, utility bills and the like. Now set this amount aside in a different bank account – not in your salary account. This way, the starter emergency fund is physically walled away from your operational salary account.
Starter Emergency Fund
Starter Emergency Fund – 1 month of expenses
Save in separate bank account. Not in the salary account.