Divorced in Retirement? 20 Ways to Maintain Your Financial Independence

6. Build an Emergency Fund

When you pay yourself first, a portion of that allocation should go to an emergency fund. Many financial experts consider an emergency fund to be the first step in a responsible financial plan. Surprise expenses pop up all the time, and without an emergency fund to cover things like a car repair or a leaky pipe, you’re likely to take money from other needs, such as your long-term investments. An emergency fund gives you peace of mind that a sudden expense won’t derail your daily financial life.