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Building an emergency fund

Resulta ng larawan para sa emergency fund

No one of us can predict can predict what will happen in the future. Same is true when it comes to predicting the next financial hardship life will throw at your business. It may be that tomorrow your main production machine breaks down unexpectedly, or maybe you have to bring one of your employees to the health centre because of an accident. Who knows?

The only thing we can be sure of is that life will create unexpected expenses that all of us will be forced to pay, whether we’re ready to do it or not. Fortunately, there is a sure remedy to making sure that such financial issues can be handled in a way that will make the difficult circumstances more manageable even without the need to borrow money from banks, financial institutions or private individual lenders.

Emergency fund is also known as “rainy day” fund. For sure, this will come so it is advised that you calculate what it would cost you to live for 3-6 months and save that amount of money in case something happen. If an unexpected damage or loss occurs, that money will put you in a position where, you’d be able to spend a comfortable amount of time seeking more solutions for recovery without worrying about how you’ll be able to pay the bills.

Want to learn more about emergency fund? Check out this article from Money Smart Australia for more details: https://www.moneysmart.gov.au/managing-your-money/saving/building-an-emergency-fund