To protect your financial stability
The concept that you have the emergency and unexpected event fund is enough to avoid using your credit card and drowning yourself in debt.
Everyone should save in the case of a little bit of money
How much money should you keep?
Although the question is exactly how much money is needed
The minimum is so that your emergency fund is up for debate The amount should be enough to cover your expenses Everyday life for at least three months. It is also wiser to save for six months, though most Planners agree to a full year in cash.
Your personal situation and what it takes
The elements are to give you peace of mind
help you determine how careful you want to be.
For example, if you have wealthy family members who have
He was always united and ready to help you in one
Financial crisis, a three-month emergency fund
It will be enough.
On the other hand, if you look for help on your credit card, you end up paying a large amount of interest on the debt. It is best to save enough money for your expenses, which are permanent minus six months.
Reserve a monthly amount first, e.g. For example, a percentage of your paycheck or some other amount that you can use to accumulate a month's living expenses over a year.
It is also advisable and useful to do this automatically. You can do this by asking your bank to run an automatic program
for the deduction from your checking account in your savings account.
Also, monitor your spending habits every month and always look for areas that you can develop. If you receive a promotion, bonus or other benefit, you should always include it in your emergency fund.
Keep your emergency fund in a simple place
accessible and secure as you need
Get cash quickly in an emergency.
Remember not to put your money in the freezer but not to tie it up
Collect them in stocks that may have declined when you need them.
It is best to open a savings account.
or money market account. However, always examine yours
Offer regarding minimum balance, interest rate and other conditions.
If you feel you have saved enough, you can now sleep more comfortably and try to invest your additional savings in more attractive and generally less accessible assets or accounts.
