Tanner’s Tips – Emergency Fund

Tanner’s Tips comprises of a father and daughter team, an unstoppable duo fighting apathy in the world of finance.

Yes finances are boring! However, in order to be prepared for the events discussed in week 1, we really must focus on the basics of our finances.

piggy bank When you get paid, be it weekly, bi-weekly, monthly, put some money aside before you spend it. It is so easy to spend money we do not need to spend when it is in our current account. Open a separate account, out of sight out of mind! Otherwise it might be wasted away on wants, rather than needs. It is best to save a small amount of your earnings into an “emergency fund” that you do not intend to spend at all. If your capacity to earn money failed tomorrow, how would you get by? Do you have a mortgage that needs to be paid? Rent? Kids? If you fall ill, and become unable to work, it is important to have this emergency fund available to you to cover the essentials. The emergency fund should be separate to your normal savings. As the old saying goes, fail to plan, plan to fail!

There are a range of different accounts that would be suitable for such an emergency fund, for example, a demand account, your money is safe, secure and ready to be withdrawn should an emergency arise. It is vital that if you have savings with a specific goal in mind(be it a fund for a car, a holiday, house etc.) that this money does not have to be drained because of an unexpected emergency. You might set up a Regular Saver account, in order to save for what you plan to spend, and the Demand account for emergency use only. If this is something you want to start doing, we offer deposits with KBC Bank, and can certainly help you on your journey to saving! You do not need to make an appointment with us, and we would be delighted to discuss your options with you, without pressure to commit to anything.

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