Why we need to set aside an emergency fund

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Emergency funds are money set aside for unplanned expenses or investments, which might be in form of health care, repairs, or just an opportunity that came up and needs to be taken quickly.

In my country today, a lot of people complain about not having enough income for themselves, then how are they expected to save, when an unplanned emergency event arises, they start running helter-skelter, looking for who to borrow from, which would have been avoided if they had set something aside over the years or even months.

You don't need to be a rich man to be able to set aside something for yourself and go to it when the need arises. What prompted me to write on this topic is what my sister @treasure had to go through when her laptop developed an issue, which needed fixing, but she had nothing to help her with the repair funding, to think that the laptop is her source of income. Emergency funds stand as financial backing which can help us not go into debt when an unexpected situation arises, instead of taking up loans every time an emergency needs arises, start setting up an emergency fund today.

That being said, what are how we can successfully achieve saving for emergencies?

1 Set a goal

A proper plan must have a goal, and determine to save up a certain amount of money, just imagine you want to use it for something, although, most times, you end up using it for another emergency which is still the goal.

2 Budget

Budget your income and your spending, so that you know how you can remain something thing that goes into your emergency savings.

3 Save double income

There are times when we earn more than our regular income, especially for business folks, when this happens, save more instead of spending more.

4 Save in a bank

I know how some people brag about being able to save their money at home, my dear, the best place to save with less temptation is the bank, if possible, choose a saving plan, like locking the savings for a duration, it can be like a month duration, anything that works for you.

5 Save more

There are times we may exceed the initial goal we had, when you do, don't relent in saving, instead continue, and you will be glad you did when a situation arises.

Setting up emergency funds is easy to do when you are determined and goal-oriented, my sister learned her mistake, and I noticed she started saving little by little and I'm proud of her little beginning.

Thank you for reading❤❤