Ever believed in the saying, “What is today is tomorrow’s yesterday.”? – that is exactly how to describe the ambiguities in the future. What you have today might be gone tomorrow and what your plans are today might not be available for the future. Change is always an unpredictable variable in this world. Though we know that the only constant thing in this world is change, still, we can’t expect how change will come and in what form. That is why; contingency plans should always be in place. Prepare yourself for what would come in ways that won’t cause extra troubles.
In terms of money, expenses are also preordained to happen. There are happenings in life that force us to spend way more than the budgeted amount. The emergency expenses – something that is out of the accounted finances resulting to insufficiency of savings for a specific time. The uncertainties that the future holds should serve as a motivation for everyone to create an eventuality plan.
Creating an emergency fund is something that is not easy to do for – in life nowadays; having extra money is so seldom have that people tended to approach lending companies for assistance. However, an emergency fund is a savings that lets you out of debt when the only purpose of having one is for future needs. One of the things required as a first step in saving is the determination to do so. Emergency Funds are intended for future reservations. Since we all don’t know what the future holds, it is better to save for an emergency situation like; job loss, hospital bill, unpredicted expenses, or natural disasters. These financial dilemmas could happen to anyone, and for that reason, people should start setting aside savings for emergencies in a span of at least three to six months.
It may not be easy for common workers to save extra money from their salary but, having an emergency fund should also be considered as one of the priorities a person must have. It is rather easy to create an emergency fund. Like what I have said earlier, first, the person must have the determination to save for the future. Then reserving a small percentage from a month’s salary is enough as a start. Do it every payday after deciding until how many months you should save for the emergency fund then target a desired outcome of money.
Preparing for what would come is a nice habit a person should have – Always thinking about the future while not neglecting the present is a good practice to avoid getting hit right in the face when an unexpected thing is going to happen. Consider it as a priority for it could also help you avoid emergency loans that couldn’t have been necessary if you had emergency money. Another advantage is – in having emergency funds; you end up using what you saved. Therefore, there is no extra payment compared to loans which adds up interest rates on the money that is being borrowed.
It is important to decide practically on paths to take when talking about future happenings especially about future expenses for one wrong move could put you in a tight situation. Choose the path that offers more benefits towards you even if the course is full of difficulties.
http://ift.tt/2a0kre8
No comments:
Post a Comment