There will be days in which you would never expect inconvenience to happen. There will be nights that you’d be sleepless because of the crisis that you are facing. At some point especially if you are not well prepared can truly cause you a lot of stress which would result to other secondary complications such psychological and physical effects. But this can resolved. You can be prepared to whatever situations that you will encounter. This is just a matter of perseverance and discipline as well setting your priorities. If you are able to develop these you will definitely be ready in any time.
Setting your priorities is very important and among all priorities is the sense of feeling secure and safe at all times. one factor that affects an individual’s day to day living is the use of money. Money is the root of all that there is to spend and if you do not have control over it, you would never know and will not be ready if there will be shortcomings. For you to be fully equipped and to avoid financial failures, you need to establish an emergency fund for you to survive. This kind of fund ensures any damages that you will encounter unexpectedly such as unemployment, illness, could be a heart breaks and many more.
An emergency fund is a set of goal with a specific amount of savings that you want to achieve for a short period of time in which there is an allotted money invested. Remember that what you have allocated for as an emergency fund should not be touched by any means unless it’s really an emergency. Now that you know what emergency funds mean, here are the following guidelines as you set up your emergency fund.
Emergencies can happen- this situation is not planned and nobody likes to deal with an emergency because this is a crisis and it can be very stressful. Inconvenient as it may be, you do not have other choice but to settle.
Risk reduction- as soon as you have established an emergency fund along with other things like perhaps an insurance plan(if you have). Relieves stress- when you are starting to invest for an emergency fund, you will have no doubt a peace of mind because you are assured of any future uncertain events that will happen.
Keeping emergency fund in cash- always put aside your fund on a near cash placements like savings,time deposit, current or special deposit but not as an investment. Make sure that as you deposit it can be withdrawn without any penalties.
Fund in a period of time- if you have been employed for more than 5 years or you have earned a position in the company that you are currently employed it would be best for you to put in an emergency fund in a span of more or less six months. But if you are still newly employed planning for a three months time savings is good enough for you to have an emergency fund.
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