Emergency fund is money kept incase of emergencies. My plan for emergency fund is something I take very seriously, I don't joke with it. There are times in the past that some certain financial issues arose and I couldn't solve them because I didn't have emergency fund. My goal is to save enough money to cover at least 3 to 6 months of living expenses.
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Emergency fund is really important in today world. Life can throw unexpected challenges your way, having this financial cushion gives me peace of mind and helps me sleep better at night.
To build my emergency fund, I set up a different account where I send some part of my salary to. I do this every month, no matter how small the money is I always put something in the account,although I have a target on what to put per month.
Also, there is something called "ajo" in my country Nigeria. It's yoruba word for meeting, this meeting is done every Saturday. The aim of the meeting is to contribute money(every Saturday) and someone will help you keep it till you're ready to use it.
I would encourage everyone who doesn't have an emergency fund to try and do so. It has been a game-changer for me and helps me reduce the stress of thinking too much.
Strategies to maintain my fund
First, I keep it in a high-yield savings account, separate from my regular spending money. This way it's earning interest everyday while it's easily accessible incases of emergencies.
Also if I need to use the money, I try to replace it as quickly as possible before my next payday.
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Building this fund hasn't been easy, sometimes I'm tempted to spend the money for something else. But I remind myself of the security it provides and how grateful I'll be to have it when I truly need it.
If you haven't started an emergency fund yet, I encourage you to begin today, no matter how small. It's an investment in your peace of mind and financial security.
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