Tips for Setting Up a Cash Reserve

If you’re looking to generate a cash reserve, the most important thing is to create a habit of saving each week. Start by adding up all your monthly expenses, so you know what a month of expenses really looks like. Then begin setting aside 5% of your net pay and slowly build a savings. Sound like too much? Then start with a goal of setting aside $100 a week. In a year that means $5,200, which is a nice cushion.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.