Ask The Experts: How To Build An Emergency Fund For Times Like COVID-19
Having one is key to staying financially afloat in difficult times
Even in the best of times, keeping your household finances in check is a challenge that every family faces. All may appear fine and dandy when we are receiving a regular income and have nothing to worry about, as long as we are spending within our means and paying off the bills.
But what happens if things were to go south suddenly? Throw in a recession, and the income stream we have taken for granted may suddenly cease or decrease without warning. No thanks to COVID-19 and its massive repercussions, there is currently a lot of uncertainty and economic instability. With possibly perilous times ahead, how can we prevent our financial situation from being thrown off-kilter?
Establishing an emergency fund
This financial safety net is money that you can quickly access and draw upon to bridge temporary loss of income, unexpected medical costs or urgent expenses. Unlike investments or retirement savings (which are established for the long haul), an emergency fund is about having immediately available cash on hand to tide you through a crisis.
If you have already had the foresight to establish an emergency fund, keep up the good work. For those of us who need a little help, here are a few tips from finance experts on how you can get started: