GM Trendy Hiverzzz, Bad times come without warning, and here I am talking about the financial bad phase that every single person has faced in their life.
There are lots of emergencies like job loss that happen at any time, medical emergencies which are also unpredictable, vehicle repair, and a longer list, and these problems come when you least expect them.
This is like an aid kit that we prepare for advance and emergency fund work, exactly like this.
Things do not always work as we planned, so understand this situation and make a plan for unexpected things that come to break your plans.
An emergency fund is all about fighting against unplanned expenses. If you are thinking you are building an emergency fund for the vacation trip, party, or shopping, then that is not an emergency fund.
This money is strongly recommended to be used only in an emergency, I repeat, just for the emergency that I mentioned. You can't buy a smartphone using an emergency fund because it is not for that.
Remember this and then plan for an emergency fund.
Loans are unnecessary and worse when you take them for emergencies or for things like shopping and a trip. Because I believe a loan is a snake that wraps around your neck.
So avoid until and unless you're doing business. Replace the loans with an emergency fund, and that is where the emergency fund comes in the game.
An emergency fund is key to managing the financial world effortlessly. Don't trap yourself in a debt cycle that may be never-ending sometime so it is better to build an emergency fund.
Consistency is key here, and that is why smart to start with small amounts like $300 to $400 and then increase the quantity.
Let me give you the best idea. You have to set a fixed %% for your emergency fund. For example, when you are getting $500 salary, then your $50 should go to the emergency fund account.
With that 10% you can collect a handsome amount of emergency fund. When you need funds urgently, then use them and then repeat the cycle. Salam namaste, take care.
"Dream is not that which you see while sleeping, it is something that does not let you sleep." - Avul Pakir Jainulabdeen Abdul Kalam 💪
Posted Using INLEO
Congratulations @saad.suri! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 20 posts.
Your next target is to reach 700 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP