3 Steps To Make Emergency Savings

 A disaster can come unexpectedly or unexpectedly. What is important, we need to always be mindful and prepared to face any disaster that may come at any time.

Suppose one day we get sick and need high medical costs, do we already have the preparation to deal with it? Do we already have savings to use in the event of an emergency?

Let’s take a look at these steps to prepare for emergency savings.

1. Set Goals

First of all, we look at income stability first. If you have a steady income each month, start emergency savings of at least 3 months from your salary.

If you are a person with a non -fixed income like a real estate agent or unit trust, there are high commission months there are low commission months - then start saving until there is 6 months of your average commission.

Whatever your job sector, make sure you have a minimum of this amount of emergency savings in preparation.

You can also contribute to Takaful with a medical card to enable us to get treatment if we have to be hospitalized. There is also an Income Protection plan that can replace the monthly salary in the event of an accident until we are no longer able to work to earn a living.

2. Save Gradually

Not necessarily when we make these emergency savings, we need to continue to make savings once a lot. If we have never made savings before, then we need to first form the habit of saving.

Maybe start with RM50 a month, then increase it to RM100, RM200, RM300 and so on. Some even suggest that we save as much as 10% of our monthly salary.

But what is more important, is that we start as soon as possible.

3. Store In The Right Place

Once we have a goal of how much we want to keep in the emergency fund, make sure we keep it in the right place. Can create a bank account using books without any ATM card.

This is to ensure that we use the emergency savings. Understand, wanting to withdraw money is not easy. Had to go to the bank, queue up to pick up numbers and was a bit harassing.

Some even call it the goblin fund, we can pretend to forget about the existence of the savings account. Unless you are really desperate, then you can get it out.

"A little, a long time to be a hill"

It's hard to start saving, but once you've nurtured this healthy habit - we feel like life is incomplete if we don't do it.

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