3. Avoid unnecessary expenses
Forget about your Starbucks coffee or designer clothes if you want to create an emergency fund. Now, you’re most likely spending a lot of money on items you don’t necessarily need. Write down every single item you’ve bought in the last couple of months in order to see how much money you used for basic items and how much for frivolous or unnecessary items.
As soon as you do that, put them in balance. If the “scale” between the two categories has tipped decisively to the non-essential expenses side, you most definitely have a problem with organizing your personal finances.
