Let’s give you a situation. Imagine:
You are the only person who is working in the family. As a responsible individual, you are out with your family on a much-needed vacation that is absolutely a luxury and a long-awaited one too! Suddenly a mishap happened, and one of your family members met with an accident. Now you are helpless and have no clue with any money at hand! You are stuck in this emergency situation. Would you be lost? We are sure that your answer would be no! And that’s the major reason why you need to know the value of emergency funds. Savepro will help you get into the insight! What are Emergency Funds? The term emergency funds are somewhat similar to back up plans. At times of trouble or in situations like that, this becomes your savior. Emergencies can knock your door any time without being evitable, and it is your duty as a breadwinner to rectify and solve them. For the ones who have no life savings or even do minimal ones, Life can turn out to be hell! Hence emergency funds play an important role at such moments. The most important reason to invest in such funds is that you can access the money whenever you are in need. The emergency can varies from anything, like loss of a job to a minor, but it has to be an immediate need. The stability of the regular income is not assured. This is the lifesaver, and Savepro definitely recommends it is as a supporting salary. Things that you should consider before investing in emergency funds are as follows: 1. The Plan There are many investment schemes such as ELSS, NPS, PPF, etc., but they have lock-in periods And does not help at the time of the emergency. Some of the top alternatives for such situations are: 1. Liquid Funds 2. Savings Account 3. Ultra-short debt funds 2. The Amount Savepro says that your emergency fund should help you to cover at least three months of your expenses. Having three months to 8 months of your expenses covered would seem to be a nice idea! If an individual loses his/her job, these funds will help them pay their loans, EMIs, and other expenses. It doesn’t stop with this. Every time an individual’s salary and lifestyle changes, their allotments in emergency funds should keep on changing accordingly. It’s your choice to live with feeling all your life or to have a backup plan for all the forthcoming emergencies. For all your financial needs visit savepro. Plan wisely, and well in advance! Also Read : How To Improve Your Credit Score ? Know These 3 Easy Tips
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