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