Life has a way of throwing up surprises. A cornerstone of a good financial plan is setting aside money for a rainy day; this is to provide a source of funds when a financial storm brews. It reduces stress.
Whether it's the loss of a job, car repairs or unexpected medical bills, having an emergency fund helps you to pay bills without having to go into debt, or sell investments.
In general, experts advocate
saving 6 months worth of expenses, but that's just a rule of thumb that varies from person to person. Quite frankly in Nigeria, I recommend saving a year’s worth of expenses.
Emergency cash should be easily accessible, so it’s there when you need it. It is not for long term investment purposes so should be in a secure, easily accessible money market fund, fixed deposit etc not tied to an ATM card.
I love these lessons from Noah’s Ark
https://lnkd.in/ghY3dWV
1. Plan ahead! It wasn't raining when Noah built the Ark.
2. Remember that we are all in the same boat.
3. Don't listen to critics; just get on with the job that needs to be done.
4. Remember, the Ark was built by amateurs; the Titanic by professionals.
5. No matter the storm, when you are with God, there's always a rainbow waiting.
6. DON’T MISS THE BOAT!
OPUNIMI AKINKUGBE
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