Part IV: How to Save for Reserves

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Sandy Botkin
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In prior posts, I noted the absolute need for reserves and noted how much in reserve you need. The final question is, “how do you save up that much money?” This is the $64,000 question.

Here is the secret:
Have a fixed amount of each paycheck taken out for savings. Learn to live on what is left over! The government has been doing this for years. It is called withholding on taxes
However, unlike the rest of us, the government can’t seem to live on what is being paid them.

You may have to track your expenses, using a tracker such as Taxbot, to see where you can cut back your spending. such as having your daily latte.

Finally, don’t ever touch the reserve fund unless a legitimate emergency arises for its use such as unemployment, huge repairs etc.

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