Thursday 14th of December 2017 8:08:55 AM

  • Allotment for Emergency Fund

    Monday 10th of September 2012 8:28:52 PM

    A part of your earnings should be allotted to emergency fund as this will serve as your security for unexpected circumstances in your life such as covering for medical expenses, mortgage, ballooning penalty on taxes, and other major bills that needs immediate attention.

    According to finance experts, emergency fund should be treated as a “recurring bill” so that everyone will be responsible enough to pay for it monthly. Ideally, the amount of emergency fund should corresponds with you three(3) months living expenses. The idea of saving for emergency fund can only be attain if you know your needs and wants. Maxing out your IRA is a splurge just like going for an on and on vacations. Owning several credit cards beyond your limit may possibly lead you in having unnecessary debts. Living within your means therefore constitute the idea of emergency fund.

    Thought of the day: Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.    —Proverb 21:5

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