Do You Keep An Emergency Fund?

Discussion in Personal Finance started by luckycharm • Feb 27, 2017.

  1. luckycharm

    luckycharmActive Member

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    As the name denotes an emergency fund is meant to meet exigencies in life like a sudden illness, loss of job, financial crisis etc. It is advisable to keep a portion of your income every month towards this fund. Present day life is quite unpredictable and we never know when we will be needing money. So instead of ending up borrowing money at high rates of interest it is always good to have some money readily available. As you know when we need money in the shortest time possible the rate of interest will be at the highest level.

    Do you have an emergency fund and in case of a monthly saving how much is the percentage to keep towards this fund?
     
  2. Alexandoy

    AlexandoyWell-Known Member

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    We keep our extra money in a bank account which we consider for emergency needs. In the olden times when there is an emergency, what we did was to borrow money at usurious rates. We had no choice then because our income was just enough. Now that we have a little excess during paydays, we make it a point to save even a little to avoid getting a loan for emergencies.
     
  3. Shine_Spirit

    Shine_SpiritActive Member

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    Yes, it's crucial to have money set aside for an unexpected time like that. Me and my family make a point of always saving some money for those bad situations.

    No matter if it's a large amount or a small amount of money, the key is always to save a little for some eventual moment.

    Sooner or later we'll all need.
     
  4. Decentlady

    DecentladyActive Member

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    I too save money for emergencies. Whatever the amount I can it may be. Every penny counts. Since I am one person who is against borrowing and debts, I make a point to help myself by saving.

    It is always better than creating a debt which seems difficult to clear in future, making it another burden to already existing one.

    Such viscious cycle of debts are very stressful in my opinion.
     
  5. Nakitakona

    NakitakonaActive Member

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    I have to admit it is a bit not easy to set aside money for emergency. But as what the often quoted saying, "save for the rainy days", to save for exigency is a must. I try to do it but yet I have failed. In case for emergency, I have to go to a usurer who is too many in our place and I have to suffer the usurious interest rate for my money borrowed. Actually, we are used to of not putting a money for an emergency. I think it is high time for me to save for the rainy days.
     
  6. moondebi

    moondebiActive Member

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    There's nothing like emergency fund which I set aside, but yes, the cash which could save after meeting a month's expenses, save in a bank account. From that prospect, my savings bank account is my emergency fund. A little saving a day goes a long way. The only problem is, saving accounts do not see much of an increase on deposits.
     
  7. Belovedad

    BelovedadActive Member

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    I always have money that I never spend but I wouldn't call it emergency funds because I literally never spend it. Maybe I'm a miser or I haven't gotten into a serious situation yet.
     
  8. Jessika

    JessikaActive Member

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    I keep an emergency fund in case the worst happens or I lose my job. It's about three months earnings, so I can keep a roof over my head, food on the table, etc. I salt away spare cash still, but since it reached this level I've stopped adding to it and focus on paying off or down debts and day-to-day problems.
     
    #8Mar 9, 2017
    Last edited: Mar 9, 2017
  9. Ray1

    Ray1Well-Known Member

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    I know what you mean, I have couple of fixed deposits for this particular purpose with no lock-in condition which means I get a little lesser interest on them but at the same time I can liquidate them whenever I need cash in an emergency. It's better to keep your money in fixed deposit account for emergency purpose.
     
  10. Jamille

    JamilleActive Member

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    This is a very important step in ensuring that you will not lapse into debt problems when you lose your source of income. I saved 30% of my salary until I was able to accumulate $2,500 in emergency funds. This was intended to cover my expenses or bills for six months in case I lose my job. After building my emergency fund. that's the only time I started allocating my money for savings, investments, and educational funds. The emergency funds were very useful when I lost my job and didn't have other sources of income.
     
  11. overcast

    overcastActive Member

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    Earlier I used to avoid keeping the emergency funds. But now a days I am making use of the 1 year of the saving. And that is how my emergency fund seems to be working out. And that being said, emergency funds to some of the months would be rather harder to manage. I have saving issues for myself these days. I have to focus on getting more savings.
     
  12. jakub

    jakubMember

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    I have two separate savings accounts, one for occasions or traveling and the other in case of an emergency since you can never be sure of what could happen.
     
  13. Heatman

    HeatmanActive Member

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    A wise man once told me that if you don't plan for the unforseen variables, you will always be caught off guard and disgraced. So as result of this, I always have a contingency plan in everything I do.

    When it's comes to fund, I always map out a specific portion or amount of money to go into my contingency plan slush fund. 10 percent of my monthly salary goes into my contingency slush fund account. Immediately I get my payroll in a month, I have already arranged with my account officer to handle the transaction, so I need not to worry as I would only get alert immediately the funds goes into the account.
     
  14. Kimika

    KimikaActive Member

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    I do save some money for emergency but I do not like the idea of putting it in a bank. I like banks that's why I use them, but I really do not like my money sitting around in my bank account. I can just put it somewhere in the house and keep it secured. At least I have easy access if ever I would be needing them.
     
  15. Rock1987

    Rock1987Member

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    I keep an emergency fund in my savings account. I keep at least 10% of my salary in the emergency fund. Emergency can occur at any time, so it beneficial and logical to keep some money in the emergency fund. People who live paycheck to paycheck should also keep a small amount of money aside for unforeseen circumstances.