Instant cash fund for emergencies – Most people have faced a financial emergency at some point in their life. The most common types of financial emergencies being as a result of loss of income, high medical bills or even urgent car or home repairs, it’s safe to say numerous people have faced one of these challenges. When facing financial challenges, many peoples’ first instinct is to apply for a loan. What most people don’t consider is how much better it would be to set up an instant cash fund for emergencies.
How to set up an instant cash fund for emergencies
Most experts say it’s advisable to save at least three to six months of your living expenses. You need to take a few factors into account, such as the size of your family, the amount of debt you have as well as insurance policies you have. You can start by simply setting aside a small amount every month. You should also allocate bonuses and extra payments to your instant cash fund for emergencies. If you have a side job or side business, make sure that you allocate some of the funds towards your cash fund
for emergencies. Keep in mind that the more contributions you make towards this fund, the better your safety net will be.
By opening a savings account, you are likely to be more accountable for your cash fund. Instead of saving cash occasionally, you should opt for saving in a bank account. This way you can also keep track of your savings. You need to be disciplined about making regular deposits. With time, you should increase the amounts that you deposit.
Other options for saving your money include money market accounts. It’s important to keep your emergency fund liquid, so you should be able to withdraw the cash when you need it.