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I believe people dont realize how humans tend to self-sabotage with money without knowing it, Cisneros continued.
Psychologically bucketing and automation help out habits because they will reduce our active involvement.
If we have to manually go in and do something it is less likely to happen.
I remind them savings/investing shouldnt be hard, it should be easy, boring, and efficient!
Rojas suggested that you start with your cost of living.
A general rule of thumb for an emergency fund that is adequate is 3-6 months of expenses.
Alternatively, if you are single and have a stable job you may be fine with 3 months.
You also want to take into account the risk tolerance of an individual, Cisneros said.
So I would say shoot for your first $1,000.
This will help you gain momentum without a large number looming over your head.
Set automatic percentages to contribute to your emergency fund, Rojas offered.
Remember to leverage automation and the hardest part is saving that first drop in the bucket, Cisneros said.
You will be glad you did when an unexpected life expense happens.
Once you reach your target amount and need to take money out, replace it quickly.
Its always better to replenish a bit than to start from scratch.
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