Life is unpredictable regardless of how young you are, how healthy you are, how rich or poor you are, and so on. When disaster strikes, it often comes unannounced. If the emergency impacts your finances, you should already have a cover to face it. Smart Financial Advisor Kuber Mindz says that being financially prepared to deal with exigencies is more of a necessity than a luxury today. When anything can happen anytime, one should obviously expect and be prepared for the unexpected.
At times of financial crisis, most people rely upon borrowing money. It could be from their own savings and investments or from family and friends, moneylenders and banks and financial institutions. Rather than borrowing, it will be easier for you if you have an Emergency Fund.
What is an Emergency Fund?
An Emergency Fund, also known as a Contingency Fund is a corpus set aside to pay for unexpected events and emergencies. Best Financial Advisor Kuber Mindz Moneymindz says that the Contingency Fund can be used for all kinds of Emergencies such as job loss, hospitalization, urgent repairs, and unexpected expenses and so on.
Illnesses and injuries are the most common reasons for the keeping and usage of Emergency Funds, apart from loss of active employment. But i could be any Emergency that demands a lot of unexpected expenditure from your side.
As recommended by experts, one should ideally keep six months to one year of expenses worth money in an Emergency Fund. Since it is used for such purposes only, it is often known as “Rainy Day Fund”. Best Contingency Fund Advisory portal Moneymindz
How to create a Rainy Day Fund?
It isn’t hard to create an Emergency Fund. But just make sure it is accessible when you actually need the money!
- Create a budget
A budget consists of your monthly income, expenditure, savings, investments, insurance, financial goals and the time frame by which you want to achieve each goal. This helps you keep track of your money.
- Spend what is left after saving
The great Investor, Warren Buffet once said “Never save what is left after spending. Rather spend what is left after saving.” This advice is what made him financially successful and rich.
- Open a regular savings account and deposit regularly
Finally, open a regular bank account and start saving routinely till you find six to twelve months money worth of your expenses. Continue saving without stopping and don’t spend unless it is an Emergency.
- Mind your money and don’t invest in risky avenues
Keeping up with the Jocoseness, investing in risky avenues with money for Emergency Fund, etc must be avoided as that will only make you lose more money.
Saving money ought to be the first priority and Moneymindz helps you exactly with that! For more information, do
visit www.moneymindz.com or give a missed call to 022-62116588