close
Advertisement

How much should I have in my emergency fund?

It’s important to have an emergency fund to deal with any of life’s unexpected troubles. Find out how much you should be saving and how to get started

How much should I have in my emergency fund?
Pixabay

An emergency fund is exactly that - it’s the money that will tide you over when an emergency happens.

This includes losing your job, having to pay for urgent home or car repairs, and to pay for medical and dental emergencies.

Because it’s meant to be accessed quickly, you should keep your emergency funds in a liquid bank account.

Advertisement
How much do I need?
How much do I need?
iStock

First you should know how much you spend in a month.

Keep track of your expenses for three to four months.

You should already start saving some money while you do this exercise.
 
An emergency fund should only be used to cover the necessities and not the luxuries, which means bills such as transportation, utilities, groceries and your rent or mortgage.

You should not be using this money for holidays or shopping.

Save money in ways you've never thought of before with these 10 tips.



Advertisement

More in Money

You’re wasting your money if you’re buying these 14 things in brand-new condition

You’re wasting your money if you’re buying these 13 things in brand-new condition

Used items can be the same great quality at a fraction of the price.
Building a happy retirement

Building a happy retirement

Viewing retirement as being a time of endless opportunity is the first step, says retirement expert David Kennedy. And if you're looking to start a business but think you're too old – think again: experience, networks and resilience are just three valuable qualities you can bring to the entrepreneurial world, writes Danielle McCarthy.

13 Things You Should Know About Negotiating

If everything is negotiable, here’s how to get the best outcome.
Will we still need cash in the future?

Will we still need cash in the future?

Is it possible to leave home without any cash? We take a look at some of the cashless options available in Singapore and Malaysia
5 ways to cut your energy and water bills

5 ways to cut your energy and water bills

Just a few simple adjustments can help keep your bills in check

Advertisement