Assess Your Spending
Circling back to your spending habits, once you’ve set your minimum goal it’s time to look at what you’re going to be spending that money on. It’s best to consider what your life will be like if you lost your job so that you’ll be completely covered in the case of such an unfortunate event. That’s why, even if you’re forseeing damage to your house or car, those shouldn’t be the only things your savings should cover.
Utilities, rent, payments, everything should be put in an excel sheet (or use good ol’ fashioned pen and paper!). Don’t forget about all the fun stuff, though. Even in the worst-case scenario you need to remember you’re still human and still need small comforts.
Plan for some eating out, take away, or even just going to the cinema. That way, when worse comes to worst, you’ll at least have some money to help you unwind.