In case of an emergency; COMMENT.
HOW long could you survive if you stopped earning money tomorrow? It's a question most financial advisers ask their clients pretty early in their relationship and the answers are often surprising.
Most advisers reckon that people should have an emergency fund that equates to three months' income, although some would increase this to six months.
Redundancy, illness or the breakdown or a relationship can cause a sudden drop in, or loss of, income but the bills still need to be paid and if there is nothing in the bank we end up resorting to borrowing money.
Of course many of us find it difficult to make ends meet even when we are earning money and so putting together an emergency fund is not easy.
Try to find a little bit of slack in your budget and transfer a small amount to a savings account every month. Don't wait until the end of the month to "see what I've got left".
Look at your budget, figure out how much you can afford to save and transfer it to your savings account as soon as you get paid.
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|Publication:||Daily Record (Glasgow, Scotland)|
|Date:||Jun 9, 2017|
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