Saving Money 101: Stop Wasting and Start Building Wealth

Why Saving Money Feels Hard (And How to Make It Easy)

Ever check your bank balance and think, Wait—where did all my money go?! One minute, payday hits, and the next, your hard-earned cash has vanished—eaten up by bills, surprise expenses, and everyday spending. It’s like your money is playing hide and seek… and winning.

But here’s the good news: saving money doesn’t have to feel impossible. You don’t need to overhaul your lifestyle, live on instant noodles, or give up everything fun. A few smart tweaks can turn saving from a dreaded chore into something effortless—maybe even a little exciting. Let’s break it down.

Why an Emergency Fund is a Game-Changer

Life has a knack for throwing expensive surprises your way—your car breaks down, a medical bill pops up, or your fridge decides to call it quits. Without a financial cushion, these moments can turn into full-blown crises, leaving you scrambling for a solution.

That’s where an emergency fund comes in. Think of it as a financial safety net. Instead of reaching for a credit card, borrowing money, or selling investments at the worst possible time, you can handle unexpected expenses stress-free. No panic, no debt—just peace of mind.

How Much Should You Save?

Think of your emergency fund like a financial airbag—you hope you never need it, but you’ll be glad it’s there. Here’s a good rule of thumb:

• Steady paycheck? Aim for at least three months’ worth of expenses.
• Self-employed or income varies? Six months is a safer bet.
• Retired? Keeping up to a year’s worth of expenses in cash can help you avoid selling investments during a market downturn.

And don’t stress about saving it all at once. Start small, set aside what you can each month, and watch it grow.

Where to Keep Your Emergency Fund

Not under your mattress, that’s for sure. And not in a checking account earning zero percent interest, either. The goal is to keep it safe, accessible, and ideally, earning a little something.

If your expenses are in dollars, a U.S. money market fund could be a great option. Some are even insured, similar to FDIC-backed bank accounts. Unlike a regular checking account, which earns almost nothing, money market funds often provide a variable return, so be sure to check with a financial professional to understand the risks and details.

If you need shekels, Israeli banks may not offer great interest on regular accounts, but some allow you to lock your money for short periods (daily, weekly, or monthly) to earn a little extra. Even a small return is better than letting your money sit idle.

Beyond the Emergency Fund: Making Your Money Work for You

An emergency fund is your financial safety net, but long-term security requires more than just stashing away cash. At some point, you’ll want to stop working—or at least have the option to stop.

Many people assume that between Social Security (U.S.), Bituach Leumi (Israel), and their pension, they’ll be fine. But the reality? Those sources often fall short. To maintain