Are you saving enough for the rainy days? Understanding the emergency fund & why it matters.
Nov 22, 2022 - 1 min read
Life is full of surprises and uncertainty.
Just like the weather!
You have sunny days and rainy days.
All of a sudden you lose your job. Or someone from your family gets sick.
Or another pandemic just like the Covid strikes again?
Who knows? Right!
“By failing to plan, you are preparing to fail”.
So do you have a plan for such unexpected events?
Save for the rainy days!
Rainy days= hard times or times of misfortune
And an emergency fund may be your savior in such rainy days!
What exactly is an emergency fund?
Emergency fund is your plan or the umbrella for your rainy days.
From your income, you may set aside a certain amount and build your emergency fund. It may be kept in a bank account or with yourself but you save a certain amount of money for your hard times.
How much should I keep in the emergency fund?
Well, it depends!
But it should be enough to cover at least 3 to 6 months of your regular household expenses.
Want to know more on how to create an emergency fund?
Comment below and we will prepare a step by step guide to help you.
The first step is knowing your monthly spendings! If you haven’t started tracking your money, sign up for Khatapana.