Hello friends.. How are you all doing today? Trust you've been good? Happy new week to y'all.. Its another week of the IUcontest and am so glad to participate in it. Based on the topic for this week's contest, An emergency fund plan involves the setting of savings goal of a fewmonths for the worth of living expenses, automating savings, keeping the money in a safe, and only using it for true emergencies. The plan for an emergency fund depends on the amount you earn monthly and your income stability and expenses.
The necessary steps that is involved in the plan for emergency fund includes;
• You should be able to determine your goals and savings. You must be able to calculate your average monthly spendings and expenses, so that you can be very able to settle the need of emergency if it arises. For the self- employed or those that have a less stable income, larger fund of six to twelve months expenses may be more appropriate to cover up the emergency fund plan.
• Again, you should learn how to cut down unnecessary expenses. The need to review your budget and finding out areas where you can reduce unimportant spending, is very essential. Redirecting these funds into your emergency savings will help it grow faster and make you not to depend on anybody when the need for it arises. Also, we should store our emergency fund in a separate account which we can't easily access for our monthly cut down and spendings.
• Lastly, let's adapt to automating our savings. We should learn to set up an automatic transfer from your current account to a separate savings account. This helps desertain the temptation to spend the money before you can save it and helps build consistency.
In Summary, I will say that expenses and circumstances are unforseen. So, we should adapt to the spirit of saving because of emergency needs. Here comes the end of my post today.. Thank you all for engaging.. I wish you all best of all this new week.. I invite my friends @favouright @chilucky @kachy2022 to partake in this contest.
