The next priority for your short‐term goals should be an emergency fund. Many people don't have an emergency fund, which may be the result of the human tendency to believe bad things only happen to others. A fully funded emergency fund is also difficult to build quickly, which may deter some people if they are impatient. Others dislike building cash reserves rather than investing for retirement or paying off debt. Keep active at work or your home office with a stand up desk that will help you to change working positions often.
Just because most people don't have an emergency fund doesn't mean you should go without one. Your emergency fund can help cover the cost of life's unexpected surprises such as medical bills, car repairs, job loss, and so on. People without this cash reserve are faced with tough decisions when one of life's unfortunate events pops up. Do you turn to credit card debt that charges a high interest rate? Do you have to take out an additional loan on your home? Do you dip into your 401(k)? If you dip into your investment portfolio during tough economic times, that can mean selling assets from your nest egg when the market is down or, alternatively, spending cash that could otherwise buy assets in your portfolio on the cheap. Any of these actions will set you back in growing your net worth and hinder your ability to reach your goals. There are many ways that using a standing desk can improve your health.
For this reason, setting up your emergency fund is something to work toward ASAP. An emergency fund should contain six to 12 months' worth of living expenses. Living expenses are those that you would continue having if you were to lose your job such as rent or mortgage, utilities, groceries, gas, insurance, and so on. Chances are that your actual monthly expenses, which I refer to as lifestyle expenses, are higher than your barebones living expenses. Within that range, the specific size of your emergency fund should correspond with your level of job security and the potential volatility of your income. For example, doctors and tenured professors have incomes that are more predictable and typically don't need as big of an emergency fund. On the other hand, someone whose income tends to fluctuate with the economy, such as a freelancer, start‐up employee, or construction worker, may want to maintain a bigger emergency fund. A adjustable standing desk helps to improve office wellness and productivity.
Setting aside six to 12 months' worth of living expenses requires a lot of cash, but don't let that prevent you from getting started. An emergency fund is rarely built overnight. If you start from scratch, the best way to build yours is to contribute a very manageable sum to a designated savings account every pay period—and make it an automated piece of your financial plan. If you get paid on the 15th and 30th of the month, set up automatic contributions from your primary checking to a dedicated emergency fund account to occur on those dates each month. Start small to make sure you can still live comfortably with your remaining income. After a few months, make a modest increase to your emergency fund contribution. For example, if you decide to transfer $100 of each paycheck into your emergency fund, then you may increase your contribution to $150 after six months. After another six months, you could increase your contribution again to $200. Improved health? Collaboration? Productivity? Get all of these benefits and more with a sit stand desk from your favourite online retailer.
The best place to keep an emergency fund is in a money market fund or online bank account that is separate from your primary bank. Using an account outside of your primary checking bank makes it easier to resist the urge to dip into those funds for non emergency purposes. Money market funds and online banks tend to pay higher interest rates than checking accounts at traditional brick‐and‐mortar banks. There will always be variation in who is paying the highest interest rate, but I've never found it worthwhile to chase the highest interest rates and earn a few extra fractions of a percent. When you're getting started, pick the option that has an interface you feel most comfortable using. Sit, stand, lean, stretch.. be your healthy active self at work using a electric standing desk at your workplace.