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:
1. It’s safe
2. Instead of just sitting there doing nothing, the money can earn me some dividends.
3. In a sense, it is easy for me to deposit and withdraw the money but also it’s an account that is a bit hard to access (because of no online banking, ATM, debit cards and etc. in my case), thus discouraging me from splurging the money.
Currently, I’m aiming for 6 months worth of expected salary (expected salary meaning how much I expect to earn when I get a job) to be saved there and I’m about halfway to my target.
It is also important to note that many financial experts out there recommends that you have an emergency reserves first before commencing on your investing journey. I happen to agree with them.
So, do you have your emergency money set aside already?
Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.