Don’t Joke With Your Emergency Funds!

I trust you are doing just well.

Life happens all the time; good things excite us and emergencies that spring up unannounced and startle us .

Last Saturday, just before midnight, my family had to make payment for an emergency situation that could have led to a chaotic situation if not sorted. A few hours before then, if someone had told me we would be spending that much before that day ran out; I would have called the person’s bluff!

Another day, I was driving on third mainland bridge and my car just went quiet on me. It stopped almost abruptly and it was a struggle moving it to a safe side of the road. It took a mechanic and a towing vehicle to get me out of the place.

You see, stuffs happen.

I teach these stuffs, I walk the talk and the talk makes more sense as I put them to practice. My experience buttresses my teachings about having emergency funds.Those expenses that spring up without prior notice.

At least you could plan for school fees ahead, for rent, for groceries, but who knows when an emergency medical issue would spring up? Who knows when a pipe in the house would give in, who knows when the car would decide to act up in the middle of a major highway?

We always pray for the best, but sometimes; funny things show up and there’s hardly any emergency that doesn’t require spending money!

What should I keep aside as Emergency Funds?

Dave Ramsey; my finance mentor suggests a STARTER EMERGENCY FUND of a minimum of $1,000. This could be applicable to those living in the United Kingdom and Europe generally ie £1000 or €1000 because of their relatively stable currency but for my Smart Stewards in Nigeria, you know it’s child’s play to say you are keeping N1,000 as Emergency Funds.

What you should save aside as Emergency Funds especially in Nigeria is relative; but I suggest you have some N100,000 vex money kept somewhere easily accessible for Emergencies- maybe a savings account that gives good interest or an investment account you can easily access.

He further advises to keep a fully funded Emergency Fund constituting  3-6 months of your living expenses in case you lose a job; this will help you hold forth till another comes.

Have you had any financial emergency that shook your world? Please share with me.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Above Whispers

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