Hello to all hive users ❤️🤗🙏
Hope you all are healthy and doing great in your life🙂
We spend all the money we earn on our expenses. People who do jobs spend according to their salary. There are some people who control their expenses and keep more money for savings. If we talk about a common man, then there are some expenses in his life which are necessary. For example, if a person lives in a different city from his home and works there, then the first expense is of his rent, after that the second expense is of his food, travel etc. After that if the person is married and has children, then their expenses are separate. When all the expenses are completed here, then the person thinks of saving or investing the money that is left. After investing, if some money is saved, then what does he think that I should keep it for some emergency. Actually, if seen, very few people keep money for emergency fund, many people are not aware about it and they do not take this thing seriously.
Image by Mohamed Hassan from Pixabay
Some people think that the money we are saving will be used for our emergency but it is not so. If I define emergency fund then it is that fund which you should save even if your source of income is lost. For example if you are doing a job and due to some reason you have to leave the job then how much fund should you have that even if you do not get a job for 6 months, still your essential expenses should continue. If we put our savings and investment money in emergency fund then our future planning will get spoiled and we will have to plan again in that way and after that it will take a lot of time to earn that money again.
If I talk about myself, I do a job but my salary is not much. And if I talk about my expenses, right now I do not have many responsibilities, due to which I manage my expenses. If I remove my necessary expenses from whatever I earn, I invest some money from it and transfer about 30% of my salary to another account as an emergency fund. It is not necessary that I invest only 30%, I feel that if I invest a little less, I can transfer more money there too, so there is no fixed value in this, yes, but I do invest at least 30%. Here my planning regarding emergency fund is that whatever money I am earning right now and if by mistake my source of income, I can survive myself for at least 6 months and I am saving that money so that I do not have any financial problem in these 6 months. 6 months are enough to learn a new skill or get a new job. I keep emergency money in my bank account and I do not invest this amount anywhere because if there is an emergency, I can access the money. Along with this, I also keep some money in the form of cash so that if there is an emergency in which I need money immediately, then I can withdraw that cash amount from my account and spend it as per the need.
I believe that everyone should plan an emergency fund for themselves because an emergency can happen to anyone at any time. Emergency is such a thing that comes without any notice and then the person either borrows from someone or he is left with no other option except to be disappointed. Even if he gets money, sometimes it comes in the form of a huge interest which takes a lot of time to repay. A person should be prepared for every emergency and if we talk about health emergency, then for this I would say that a person should definitely get health insurance because health insurance is the thing that can save you hospital expenses worth many lakhs. If you ever have a health emergency, then in such a situation, if you do not have health insurance, then you will have to bear all your hospital expenses and you people will know their expenses. That is why we should be prepared for every type of emergency. I believe that a person should always hope for the best and prepare himself for the worst of times.
Thanks for reading till the end🙏
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