Theme: What's your plan for an emergency fund??
Tell us about What's your plan for an emergency fund?, tell us what are your plans. Do you think it is necessary ? Would you like to recommend it to others. If you can share your strategy that would be great (not compulsory xd. )
You can write about it in as much detail as you want.
Answer
Building an emergency fund is not a widely practised financial habit in my country now but in the days of my grandparents, I remember they had savings put away every day, in a safe box. The only way to get access to it was by breaking it at the end of each year for Christmas expenses or in the case of an emergency. It was a tradition I followed at the earliest stage of my life but which somehow fizzled out over time.
The only constant in life is its unpredictability and that's why one has to be prepared for eventuality, to avoid financial chaos. An emergency fund comes in as an important lifeline.
Though in my country, nigeria, we battle against hardships and has been doing so for a very long time, all blame rests on the doorsteps of irresponsible leaders and all those at the helm of affairs. The removal of petrol subsidy some months ago and the depreciation of the naira have worsened the country’s economic situation, making families to struggle in meeting their very basic needs.
A lot of my people are not able to save money for emergency fund because of some of the reasons mentioned above, they find it challenging.
Agreed that saving is one of the best ways to plan for eventuality, but saving up large sums of money and letting them sit idle in a bank account is even the worst strategy right now, because we live in an inflationary environment where money depreciates by the second.
This strategy I learnt from my father who invested heavily in real estate, especially Lands. He had several lying over the place and would sell off anyone in case of an emergency, like when he had to go for an eye surgery in far away Kano State. It was so convenient and so stress-free that all expenses were taken care of by the sale of just one Land.
So instead of saving money in the banks, my husband and I are gradually investing in real estates because rather than depreciate, the value appreciates more each day, so it is kept safe from long-term value loss.
Financial emergencies are inevitable, but with proper planning and preparation, we can weather any storm that comes our way. I know that this is just the right time to save or make wise investment decisions which will put idle funds to good use.
Thank you 