What is an emergency?
An emergency is a situation which affects your life in a way that you are not in good health or you cannot earn money. In such situations it is important to have enough savings.
Through this post we will disclose 9 ways where you can maintain an emergency fund for such situations.
Please be clear:
When you are saving, keep a different fund for savings and different fund for emergencies.
Be consistent in saving for emergency fund. Every month without fail, save money in the emergency fund.
Set a goal:
You must set up a goal. Once you have a huge amount decided for your emergency fund, you will be more disciplined and will save the monthly amount without fail.
Save all change money:
Yes, this sounds very childish but every single rupee is important. Whenever you get change money, do not let it scatter everywhere in the house. Instead keep a bowl/box/piggy bank and save all change. Once it gets into a bigger amount, you can go the Bank and save it.
Move money from savings to emergency fund:
On the day you will receive your salary, move the remaining savings from your account to the emergency fund. This will help you in being disciplined and also increase your emergency fund.
Try reducing your expenses if no savings at month end:
On the day you are going to receive your salary, if you don’t have any saving then that is a red alert. Hence you must be more careful. Try understanding where all your money is being spent. Try reducing expenses on items which are not so important.
Where there is a will, there is a way. There are so many extra odd jobs which you can take up on the weekends or for few hours on weekdays like giving tuition, data entry jobs, teaching music etc. This extra income will allow you to grow your emergency fund and also your savings.
File your returns and save rebate/refund:
Filing your IT returns is very important. We always mention that it is your duty to disclose all your income and file returns as it helps you in the long run. One way you can save money is through tax rebate/refund. You can get money which was charged on your income back as rebate. This will increase your savings.
What to do when emergency fund is full?
Once your emergency fund has more than enough money, you can begin a new fund for rare expenses like car maintenance, urgent travel to native place etc. This will help you be more stable financially in life.
An emergency fund will help you grow as a person and will keep you prepared in medical or immediate emergencies. So if you don’t have a fund already, do begin today. In case your requirement is very urgent and you don’t have the funds, visit www.ruloans.com and apply for the best deals on loans in India.