Getting to know about the contest days ago after not been able to participate the last time but this time around i was able to catch up and the interesting topic to talk about is the emergency fund and my plan for it but before going further i will love to explain some of the key point in the topic which is "Plan", "Emergency", and "Fund" then it will be able to make lot of meaning for readers.

PLAN

What plan basically means is just like a strategy or we call it a method which list all the steps to be taken in other to achieve a certain set goal or objectives within a period of time. Now on to the next key point to be explained in a simple way

EMERGENCY

The word emergency is tagged unexpected or we can actually call it sudden, so it is a sudden or an unexpected happening which might be a difficult one at times and requires an immediate action. just a mind definition then the next key point.

FUND

This is just some amount of money that has been kept or reserved for a certain purpose within a period of time.

WHAT IS AN EMERGENCY FUND
Combining the two definition which we have done above, we can say that emergency fund can be seen as an amount of money that has been kept or reserved to settle unexpected issue that might arise or any financial problem.

My plan for an Emergency fund

The first thing to do is just to always set up a fixed amount of money which i will always keep every month within a certain period of months or years and with that any kind of urgent issue can actually be attended to and also you wont expect to have unexpected issues evrytime so the money will be there and always increase in months. For that to be done a need to open a seperate savings account will be needed so as to make sure the money is not going to another place. listing every possible things that might require a sudden rise and need for funds.

Calculating possible things that might want to need sudden access in the like of transportation which can be as a fact of increament in public transport and also feeding, everyday the cost of feeding keeps increasing, so when certain calculations have been made, there will surely be a concluded amount to be saved per month as an emergency fund.
Some of the things that can require an emergency fund are explained below

Vehicle Breakdown:

This is common everywhere, where you see vehicles that do not have any fault before suddenly stop working along the way and when the mechanic comes the amount which would be called for repair and maintenance would be huge as if it has developed fault before.

Home Gadget and Appliances:

This is another one which need an emergency fund because some appliances at home can just suddenly develop fault due to misue or high power supply and once it is affected, it will need an immediate attention for repair.

Lot of sudden things that require emergency fund but few are talked about and that is why it is compulsory and needed to have a savings for that so as not to be stranded when need arises for it. To participate, you can check here