Nowadays especially during COVID-19 we hear references made to emergency funds. Now, what is that? Simple put its money is stored for a rainy day. However, it ought not to be a matter of fact type mission. It’s a carefully managed set of funds, from saving it to spending it.
In the event of uncertainty is why we need an emergency fund, for example, an unexpected flat tire, your refrigerator stops working, unexpected job loss, etc.
Whenever you withdraw it’s important to replenish your emergency fund.
With all this talk about emergency funds, how much should you put away? That, my friend, is up to you 6 months of monthly expenses is the standard, please note it’s based on your monthly needs. Stuff that you absolutely cannot live without.
This money should be in a separate account from your usual transaction account. It’s a break in case of emergency glass 🙂