Emergency Fund: Working women should set up an emergency fund before making a big investment, step-by-step guide.

Ronit Kawale
Ronit Kawale - Senior Editor
4 Min Read

Working women money management strategy: The very name of emergency fund reflects a time which comes suddenly, which you have not anticipated and which often brings unexpected expenses. The year 2020 of the Corona period is the most recent example of this. An emergency fund is actually a pool of your expenses that is the sum of your normal monthly expenses. If you work, then you should start working in this direction in the first few months of your first job, experts in financial matters say.

WhatsApp Group Join Now
Telegram Group Join Now

You must have at least an emergency cushion that can take care of your expenses for 6 months. Financial planners sometimes consider a target of 3 months and sometimes 6 months for this savings. Contribute a portion of your salary every month to this fund and continue doing so until you save 3 to 6 times your (and your family's) monthly expenses.

1-Why should you create an emergency fund? Because disaster can strike at any time. The need may arise at any time. Any change in marital or family situation such as divorce or death of a spouse is one such situation when your income decreases and expenses increase. It is also possible that the children whom you considered your support may not be with you in future due to some reason or may not be able to support you.

2-To deal with the expenses after leaving the job. As age increases, employment opportunities for women often become limited. At a time when the dominance of AI is increasing rapidly, jobs are in danger. For more such information related to women and personal finance, you can click here.

3- Due to excessive rain, earthquake or any other kind of natural disaster or due to other reasons, the house may have to be repaired. This amount will be useful in this. Especially when there is no home insurance or fire insurance.

4- Due to medical reasons this fund becomes even more important. If health insurance is not taken then this is a very important fund. With age, problems like diseases, accidents etc. arise around you and your dependent family members. In such a situation, it cannot be predicted in advance when this money will be useful.

If you have not been working for much time then start with small savings. No matter how big a savings pool you want to create, you can start with a small amount. Just have it be regular. When you prepare a budget according to time, do not forget to keep a separate amount for it.

– Make a rough plan for your family expenses for 3 months. The minimum amount of your monthly expenses should be in this fund. Create a pool of 3 to 6 months. First set up a fund of three months and then a fund of six months. (Also read- Expert advice for girls who are starting to invest, how to decide where to invest)

– Do not let yourself get carried away by any greed or carelessness, you have to set up your emergency fund and for this you will save a fixed amount every month. You will have to achieve the target of this amount by disciplining yourself more. It is important to set a target and then achieve it with disciplined savings.

Tags: Business news in hindi, Emergency, Investment tips, Money Making Tips, Poor money management skills, Women’s Finance

PressNews24 provides latest news, bollywood news, breaking news hollywood, top tech news, business standard news, indian economy news, world economy news, travel news, mumbai news, latest news mumbai loksabha election 2024, video viral news, delhi news, Only at PressNews24.in

Leave a comment