1-2-1 May 2022

1-2-1: Planning for emergencies, saved from saving, and improving memory

Happy One 2 One Day!

Here is 1 tip, 2 quotes, and 1 habit to consider this month.

1 Tip: Build and Maintain an Emergency Fund

The best financial advice I ever got: "save".

Do you have money set aside for emergencies? Life happens and unexpected bills are bound to surface at some point. An emergency fund is your financial buffer to handle whatever life throws at you. 

Using a savings account is fine for this task. Just make sure you don’t rely on high interest loans or credit cards to cover unexpected expenses.

Determine what amount to set aside each month. Remember, it's more important to get started than to wait for things to feel just right financially. Aim to eventually save three to six months’ worth of expenses. But it's ok to start out with a smaller goal to save a few thousand dollars first. Finally, it's usually best to automate this process on a monthly basis. Set it and forget it for savings is powerful. 

2 Quotes From Others

“Save for the day you need saving.”  – Daniel Sciortino

“To observe attentively is to remember distinctly.” – Edgar Allan Poe

1 Habit

It turns out memories are not snapshots, but a “reconstruction” of an experience. According to Neurobiologist Michael Yassa, we have a memory so we can make better decisions for our future survival.

For example, if we touch a hot stove, our memory stores the information to not do that again. 

The brain is likely to “encode” a memory when we are paying attention and feel engaged. 

Activate your memory by staying social and curious. The more engaged you are as you interact and learn, the more likely your brain will encode the event to memory.