Guide to Finance


eg: UK or Brides UK or Classical Art or Buy Music or Spirituality

Business & Money

Technology

Women

Health

Education

Family

Travel

Cars

Entertainment

Featured Sites

Build Your Own Emergency Fund

View:

Moneymanagementfor personal emergency use is a must-do. Setting up an emergency fundfor our family is important, but more so considering today?seconomic climate. If you haven't started one yet, here's how togo about planning and setting up an emergency fund.

Analyzeyour Expenses/Spend Pattern

Takestock of monthly expenses that are mostly static? insurancepremiums, mortgage payments, tax payments, household purchases etc.
Allowsome extra money for uncertain expenses
Allocateat least 10% more than the amount that was calculated from point 1,to arrive at the total expenses amount

Analyzeyour ?Probable? Emergency Needs

Withtwo people earning ? Save up to 3 months salary as emergency fund
Whenonly one person is earning ? Save up to 6 months salary asemergency fund
Whenone or both are earning - If you have a large family ? up to 3children ? Save up to a year's salary as emergency fund. Sincethe probability of emergencies is high in a family with kids, youneed to allocate more funds.

LockUp the Amount

Comparingyour monthly expenses and emergency-needs, allocate a suitableamount that would go in as emergency funds.
Pushyour funds into a savings account that is made accessible by eitherof the partners in case of emergency
Alternately,you can choose between a bank money market account or money-marketmutual fund.
Ifyou're starting from scratch, remember to push in a bulk amountfor the first time and subsequently allocate smaller portions fromthe next month.
Andfinally, never ever touch your emergency funds for any otherexpenditure.

Remember,that you're saving for your loved. Regularly use expensetracking softwareto track your spending patterns and to keep a tab on your money.

Related Articles
Author
Most Popular

Liza has sinced written about articles on various topics from Elder Care, Shopping and Samsung Cell Phone. Writing articles is my hobby.. Liza's top article generates over 6120000 views. Bookmark Liza to your Favourites.

Calla Lily Place Cards
A rectangular picture window, with a black hinged opening on the back for easy insertion, holds a 28221 x 38221 picture and can also hold a place card or message to the guests on your event day