The Emergency Fund
I’m sure you’ve heard it before for personal finances that it’s prudent to have an emergency fund of at least 3 months of expenses.
Now I know that MANY entrepreneurs don’t have that in their personal lives because they are not even taking home consistent money so how can you begin to build up emergency funds if you have no consistent income.
But not only should you have a personal emergency fund, your business does need one too - where you have at the very least 3 (but ideally 8) months worth of business costs saved up.
I fully expect that many of you may not be able to flip the switch and magically have an emergency savings account, both personally and in your business with enough money to cover eight months of expenses in each.
But you must start moving toward that goal.
Month by month you must build financial security for yourself and your family.
You may get to the eight-month goal in six months of aggressive saving, or it may take you a few years.
That's okay.The point is that you are moving in the right direction!