Personal Finance: Emergency Fund

If you have never heard of Emergency Fund, it’s about time you do, or you will be staking your life on a “charity fund”…

Deborah Fowles on Emergency Fund…

How Much You Need in Your Emergency Fund?

Why You Need an Emergency Fund?

Where To Keep Your Emergency Fund?

The whole reason why one should setup an emergency fund is “liquidity”. Do not mistaken emergency fund for insurance protection. Emergency fund is usually used for sudden lost of income due to job retrenchment or a sudden need of huge amount of cash for example major house repairs. So, for maximum liquidity, it’s not actually a bad idea to store your emergency fund in the “milo tin” :-P

As for unexpected medical expenses, you don’t really need to allocate your emergency for it because you should carry a medical card with you at all times, unless you are footing the bill for someone else.

Everyone’s emergency fund would differ according to their situation, but rule of thumb is to ensure that there’s enough money to cushion any sudden need of cash not covered by your insurance policies until you are able to get back into black again.

So, how much have you got in your Emergency Fund?

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teresa 2 years ago 1 point
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heyz! just would like to clarify something. emergency funds can sometimes comes from taking an apl from your insurance policy. if i'm not mistaken you can take up to 75% of the cash value inside your traditional policy. one thing for sure is that you would only have a decent amount of cash value in your policy if it has been inforce for 20 years or more which also depends on how much premium you have bought the policy earlier on.

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