There`s never enough money. But then again, its all about mindset. Do u see it through lens of scarcity or abundance? Choose to create possibilities. Also saving does help.
Why is an Emergency fund important anyways?
Well to start, It always come in handy when an unexpected expense pops up. Even in daily lives, you board public transport and you`re told bus fare has increased by a few extra bucks. If you had some extra cash then it won`t be an issue. But if you don`t have ready cash then you`re in a pickle till someone bails u out or you figure a way out yourself.
- Reduces financial burden and stress
- Can cushion setbacks such as job loss or lack of.
- Allows you to pursue other interests when needed e.g school, investments
- Provides independence as an individual especially women
So How to start?
If the above list resonates with you, then we now get into the nity gritty stuff- The How.
Tip #1- Look at your income/salary, how much can you save each month. Some it can be 10% or 5%. Whatever you can manage. Its consistency that will make the difference. And from personal experience, placing bank standing order will automatically deduct from your account each month so you don`t have to think about.
Tip #2- have or open a separate account for emergency fund. So you`re less likely to pick pocket your own savings whenever you feel the nudge.
Tip #3- define what your emergency alert will be. For instance, car breakdown, clinic bill if someone suddenly falls sick etc. Weekend trips or nights out expenses are not an emergency. So can plan for those.
Tip #4- Keep yourself disciplined. Its worth it in the long run.
Once you have these key tips in check, you`re set to go!
Ofcourse I would love to hear what your thoughts are on this issue. Do you think it works for you or not?- Let`s share.
Emergency fund is having big pocket extra cash for big unexpected situations.