Pinyo of moolanomy.com [ Moolanomy personal finance ] has explain emergency fund . It is part of earning which we keep in our saving account and only use it for for unanticipated events such as unemployment, family financial problem , medical bills, children education , car repairs and Major appliance breakdown.
Every person should create this fund . Emergency fund is also more important from financial point of view because it can save any business from becoming bankrupt , enterprises keeps some amount set aside in his saving account for paying creditors in emergency ( in case loses in business ) .
Emergency fund is real power in rainy days . Every person should have minimum three to four months worth of living expenses in his saving account because after stopping of income , expenses are never stopped due to our necessary so with this emergency fund you can pay these expenses and get time for finding new source of earning .
In accounting , its name is also general reserve or reserve fund which is the part of capital of any sole trade business but actually this is Emergency Fund in real sense .
How Much Should You Have In Your Emergency Fund?
you can start to save in emergency fund 5% of your total earning every month . Suppose , your earning is $ 100 per month , you can save $ 5 save in emergency fund . After the year it will become $ 5 X 12 = $ 60 and after five years it will become $60 X 5 = $ 300 and you will get interest on saving extra and with this you can get the financial support in emergency situations .
Every person should create this fund . Emergency fund is also more important from financial point of view because it can save any business from becoming bankrupt , enterprises keeps some amount set aside in his saving account for paying creditors in emergency ( in case loses in business ) .
Emergency fund is real power in rainy days . Every person should have minimum three to four months worth of living expenses in his saving account because after stopping of income , expenses are never stopped due to our necessary so with this emergency fund you can pay these expenses and get time for finding new source of earning .
In accounting , its name is also general reserve or reserve fund which is the part of capital of any sole trade business but actually this is Emergency Fund in real sense .
How Much Should You Have In Your Emergency Fund?
you can start to save in emergency fund 5% of your total earning every month . Suppose , your earning is $ 100 per month , you can save $ 5 save in emergency fund . After the year it will become $ 5 X 12 = $ 60 and after five years it will become $60 X 5 = $ 300 and you will get interest on saving extra and with this you can get the financial support in emergency situations .
Comments