The future is unpredictable. Between illness, Family, study and work, its best to prepared.
Unexpected events may leave you at a financial deficit. Being unable to work will mean you need to have a source another means of funds. Yet, if you saved for emergencies you will be prepared.
When should i start an emergency fund?
There is never a bad time to start an emergency fund. It should be one of your financial goals.
What should I have an emergency fund for?
Every day financial necessities need to be covered in case of an emergency. This includes
- Education and study
How much money should I have saved?
The basic guide is to always have 6 months of living expenses covered. However, it is ideal to have 12months of living expenses at all times, so you are stable.If your budget for your everyday and monthly expenditure you can use this basis amount to see how much you will need for 6 to 12 months into the future.
For example, if you have 1500RM in living costs it would be expected to have:
- 9,000 RM for 6months
- 18,000 for 12 months
This amount will allow you to be able to afford your monthly expenditure without facing a financial debt.
It may be hard to save at the beginning. Making a conscious decision to save over time will help in the long run. If you want to know more on how to help save for emergency find you can use Smart Finance. You can track your expenditure and learn how to save through video lessons.
Do you need financial help ?
- Free to join platform
- Easy to understand video lessons
- Real-time tracking of your personal finances
- Set goals