Why we need to set aside an emergency fund
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❤❤
You are very right, it's good to have emergency funds, but the situation of the country warrants not having emergency funds most of the time.
This naira scarcity, it affects my work and has spent all my savings. When you have a bad economy, it's challenging to have emergency funds.
We just have to fit in for the survival of the fittest, I hope we shall all be financially free as soon as possible.
Thank you for sharing your wisdom, you are amazing!!
Thanks Actor, truly, the situation of our country is hard and stops our saving culture but as long we are still living, we should still try the little and best way we can to save for tomorrow.
Thank you so much for this wonderful comment.
Yeah that's right, God will help us
It isn't easy to save seeing how hard things are now. People barely have enough to eat. It isn't easy but achievable when goals are set and worked on
Yes dear, it's not easy but with a determined heart and goal set, it's achievable
Thanks for stopping by.
I do agree. Thanks for sharing.
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Though, the economy situation of the country may stop one from setting aside emergency fund but I think one can still save something even if it's little and set a time limit for it. Trust me, one would be happy taking that step.
I also read it when treasure talked about her laptop and how she couldn't save for it. It's good to save in case of any emergency that may arise unexpectedly.