There is nothing like being prepared when the unexpected happens, like your ante from far away visiting you with her two grandchildren, unexpected house or car repair bills. For all those thing you might need extra money and this is why you need to prepare for the unexpected by saving or having an emergency money.
The theory behind emergency fund is that you got three month living expense saved up in case of a lost of income or emergency. Three month is more than sufficient for you to activate your recovery plan and recover from the financial setback. Emergency money does go hand in hand with recovery plan. Even though you might not have a recover plan for some an expected evens it helps to prepare for some like which car garage you going to use.
The simple and straight forward strategy for building up your emergency money is to save the minimum 10% of your income as you get paid for 30 or less times and if you can automate this process of saving money by using banks facilitys, it would be even easier for you to manage your emergency money.
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