The COVID-19 pandemic recently highlighted just how crucial an emergency fund is. This international emergency illustrated just how unprepared most of us are to handle a financial disaster.

For this reason, many financial planners recommend having A MINIMUM of six months living expenses on hand to handle things such as an unexpected medical emergency or the loss of a job. It's also good to know that there are techniques for turbocharging these accounts in order to achieve some growth whilst they're waiting to be accessed.

Savings funds for short-term expenses include money set aside to pay for major planned expenses like vacations, Christmas shopping and other high-ticket items.

Keeping cash on hand helps you avoid turning to credit cards or loans other than accumulating other kinds of debt which you don’t need.

It is not overly complicated to create a financial life plan.

You will be better able to fix money problems and create a foundation of financial awareness if you follow four basic principles. You can enjoy a less stressful, more prosperous retirement by breaking free of a transactional mindset and living a more focused, goal-oriented life.