What Is Emergency Fund? Knows The Way To Have Them Prepared

The emergency fund is a savings set aside for use in times of need. It is best to use this fund only when desperate for money. It is only to meet the needs and not the wants. One example of use during an emergency is if you or a close person, such as a family member, needs to be admitted to the hospital.

You also definitely need a fund in case you suddenly lose your source of income. The probability of that happening is higher in 2023 when the world economy experiences a recession. The question now is, have you prepared it?

Picture: debt.org

How to have your emergency fund ready?

1) Improve financial security

  • to act as a ‘safety net’ for your money deprivation on unexpected moment
  • keep at least 6-12 months of your salary

2) Be aware of your commitment

  • if you’re working in non-government sector, make sure to be prepare on the unexpected situation especially bankers, oil and gas workers
  • E.g: get fired because of the economy recession

3) Understands the formula for emergency saving

  • Use 50:30:20 method for your savings
  • Don’t put too much or too little on your emergency savings. Again, go back to your commitment and see if it’s need a huge budget every months or not.

4) Plan your emergency savings proportionately

  • 50: life commitment, 30: fund, 20: savings

5) Alert on the right place to save the fund

  • For example, you decide to keep your money in ASB, but you cannot withdraw the money with the amount that you want anytime at any place.
  • If you’re worrying on that matter, it’s better to keep it in the bank account.
  • Better late than sorry. Better wait for the such period rather than have no savings at all.

6) Comprehend the level of emergency

  • There are 2 levels of emergency: A.S.A.P emergency and prepared emergency.
  • You need to split your cash evenly on different money savings platform.
  • You can always spare your savings on property, stocks, crypto and gold. for prepared emergency savings.

7) Always be ready for uncertainties

8) Don’t be too confident of your job securities

9) Choose the right time to start saving your fund

10) Split your salary for emergency savings for at least six months

11) Enhance the knowledge of asset classes

12) Understands what is ‘paper gain.’

13) Invest your savings in fixed-share units

14) Don’t sell your stocks when you’re in urgent of money

15) Get a credit card for emergency use only

Never underestimates the uncertainties, as you cannot predict the unfortunate in the future. For details information on emergency savings, you can click the full video below:

Source: Financial Faiz @ YouTube

 

 

 

 

Adib Mohd

Recent Posts

Toshiba Turns 95 with a Giant Fridge, Big Vibes & A Spot in the Malaysia Book of Records

Who says anniversaries are just cake and candles? For Toshiba’s 95th Anniversary Dealer Convention, it… Read More

8 hours ago

Resorts World Sentosa’s Singapore Oceanarium Introduces New Experiences As Ticket Sales Go Live

Resorts World Sentosa (RWS, 圣淘沙名胜世界) has announced that ticket sales have launched for Singapore Oceanarium… Read More

8 hours ago

Barista Brews at Prices You Won’t Believe Exist

Think handcrafted coffee always comes with a hefty price tag? Think again. Across Malaysia, cafés… Read More

8 hours ago

POCO Introduces POCO F7: Where Futuristic Design Meets Exceptional Power

POCO, a leading technology brand among young tech enthusiasts, today unveiled POCO F7, setting a… Read More

8 hours ago

Proton Owners Hit the Road for Wellness: AG Autoworld x Herbal Farmer Flag Off First-Ever Fun Drive in Johor

What do you get when you mix wellness, good vibes, and 30 Proton cars? A… Read More

8 hours ago

OMSMC Earns Spot in Newsweek’s Global Hospital Rating 2025

Oriental Melaka Straits Medical Centre (OMSMC) has been listed in Newsweek’s Global Hospital Rating 2025,… Read More

13 hours ago

This website uses cookies.