Posted on: 01-02-2016 in Holborn Assets
No matter how financially prepared you are, life has a way of throwing surprises that you never expect. This is why building a safety net for a rainy day is worth your time and dime for when the unexpected happens.
4 Reasons to Start Today!
Your emergency fund will be an extra stash of cash to keep aside when life throws financial surprises your way. Have a quick read on 4 surprises that should motivate you to start building an emergency fund today!
All of the financial surprises may create a financial crisis, which can quickly tap your credit and may take years to pay off.
Save or Invest?
It is noteworthy to remember that, if you ever do have an emergency, you will need quick and easy access to funds. Therefore, it is advised that the emergency fund shouldn’t be in stocks or bonds – rather keep it in liquid cash.
How Much To Save?
There is no hard or fast rule on how much to save as it solely depends on your lifestyle, budget and requirements. However, the following is a great illustration of how far you can stretch your Emergency Funds if they are ever needed:
Much of life’s negative surprises and unexpected events can be minimised by simply maintaining a well-balanced emergency cash fund. Now that you have an idea about emergency funds – Get started now!