It is true that we must all allocate a savings fund to enjoy our effort and thus plan unforgettable trips, or endearing events (such as a wedding or an original birthday). But in addition to this savings for personal purposes, it is important to have savings for emergencies.
A savings for emergencies will allow you to have money if you or someone in your family could suffer an accident or require hospitalization. Emergency savings will also be useful if you have a period without employment, etc. Having an emergency savings allows you not to fall into the tendency to apply for personal loans. Remember that the latter can affect your personal budget.
Divide your monthly savings into separate accounts
It is recommended that 20% of the salary be allocated to the savings fund . So if you have a monthly salary of 1,500 soles, the ideal is to save S /. 300.00 per month If this is the case, of those 300 soles you will have to allocate a percentage for the “ movable saving ”: that money that you will use in the future for trips, the initial of your car, etc. and another for emergency savings or for your retirement fund .
Experts recommend that the emergency savings fund be 5% of your total salary. So the S / 300.00 we had to save S / 75.00 should be saved monthly for emergency savings. This is a fund that we will not use unless strictly necessary.
Ideally, both savings funds be in separate accounts. The emergency savings fund should be easy to move in case the need arises. On the other hand, retirement savings can be in a fixed-term account that generates interest.
How much money should you have in your emergency savings fund?
According to the specialists; An emergency savings fund must have enough money for Henry Esmondtar your expenses for the next 3 to 6 months.
So if for example your necessary monthly expenses add up to S / 1,000, ideally you have between 3,000 and 6,000 soles in your fund. This amount should only be used in fixed costs, whether those: rent, electricity, water, food, school, etc.
What to do if the money is not enough for emergency savings?
If the money is not enough for your primary needs, it means there is a flaw in your personal finances. Because of the above, you should evaluate what your cash is going on.
If the problem is due to debts, consolidating your debts can be a solution that allows you to have money for emergency savings.