An emergency fund should be a cornerstone of your personal budget.
Experts recommend that you should save at least three months on expenses for unforeseen circumstances. But how much money should you save before you consciously quit your job? That’s a harder question to answer.
For Tori Dunlap, founder of women-focused financial education company Her First 100K, it was $100,000.
More from Invest in You:
That’s how much you should plan for food and housing if you make $50,000 a year
This 23-year-old entrepreneur has made millions from Amazon and Walmart
How to save $1 million for retirement on a $60,000 salary
Dunlap landed an entry-level job in marketing after graduating from college and soon found corporate life wasn’t for her.
She set a goal of saving $100,000 by the age of 25 and started a personal finance blog. Her savings grew, as did her blog followers. At the age of 25, Dunlap achieved her financial goal and became a full-time entrepreneur.
Watch this video to learn the four steps Dunlap recommends for everyone to build their own safety net.
SIGN IN: Money 101 is an 8-week financial freedom learning course delivered to your inbox weekly. For the Spanish version of Dinero 101 click here.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.