Emergency Fund: My Targets
As I’ve said before, having an emergency fund is in my opinion one of the most fundamental things that one needs to do in one’s wealth-making journey. Read about them in here and here.
Again, what is my emergency fund for?
1. To cover those UNEXPECTED medical expenses. Maybe because of problems in insurance claims and etc.
2. To cover my monthly expenses in case I get laid off from work.
3. Really, to cover those UNEXPECTED expenses.
Filed under Contingency Plan | Comments (2)Tabung Haji account as a place to store my emergency funds
I wrote a post before about the importance of having an emergency fund.
I’m following through with my own suggestion and I’m doing it myself with the help of my Tabung Haji account.
Personally, I think my Tabung Haji account is a good place for me to treat as a haven for my emergency funds.
Why? Mainly because:
Filed under Contingency Plan | Comments (4)Having an Emergency Fund
Another important component of a ‘complete’ financial plan is having a contingency plan. An important element of that contingency plan is by having an emergency fund (i.e. some money set aside for those rainy days).
It is indeed important to have some significant money set aside just in case something bad happens like major car repairs, major home repairs, urgent surgery, and etc. Yes, having insurance can cover these instances but sometimes, you yourself need to pay first before claiming from your insurance company. Plus, sometimes, it can get a long time for your claims to be processed. Who knows, you might even have problems with your insurance policies?
So, how much money should be left aside? It all depends on the individuals. 6 months worth of your expenses is fine. 12 months is better. 18 months worth of expenses is even much better! The idea is, the more you have, the better.
Where should you park this money? Under the pillows maybe? Hell no!
Filed under Contingency Plan | Comments (4)
