Emergency Funds

Emergency Fund: Why Every Singaporean Should Have It, How Much You Should Have In It & How You Can Start Building One

The importance of having an emergency fund cannot be overstated. To put things into perspective, the COVID-19 outbreak has rendered many Singaporeans jobless.  During these tough times, it pays to know that you have an emergency fund kept in place. This ensures that you’ll at least have some spare money to fall back on when things get rough. What Is An Emergency Fund? An emergency fund is an amount of cash set aside to handle unexpected crises such as medical emergencies, sudden loss of income, accidents and other similar occurrences. You will definitely  have faced some sort of emergency at a point in your life. Having a crisis can paralyze your life for a long time, especially if you had not planned for it financially. An emergency fund will enable you to ride through such challenges and keep you afloat economically, even in the face of a crisis.  It would be best to make it a priority and to include some savings for an emergency fund in your budget. Why You Should Have An Emergency Fund Here are some excellent reasons for you to build up an emergency fund. 1. You Are Planning To Get Out Of Debt If you are working on a plan to get out of debt completely, then it would be best to build up an emergency fund that you can use whenever you have a crisis. It will help you to refrain from taking up any additional debt whenever you have an unexpected financial need. This way, you will gradually be able to pay off your current loans. Ultimately, you’ll also get out of debt sooner rather than later. 2. You Only Have One Source Of Income Some Singaporeans have more than one source of income. It helps to cushion them if they happen to lose their primary income source. However, if you have a single source of income, then it will be wise for you to set up an emergency fund. It will help to keep you afloat if you happen to lose your only source of income. 3. You Work On A Contract,

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8 Smart Tips For Borrowing Money – Get The Loan That Suits You Best (2020 Update)

The idea of borrowing money is usually frowned upon on and most of us would avoid borrowing if possible. That said, there may be unforeseen situations in life where we require an extra line of credit. You may be hit with a sudden emergency and require additional funds to see you through. You can’t make ends meet when you are broke. You need to maintain your lifestyle and at the same time, you need to invest for the future. All these require you to have money. What happens when you don’t? It is thus normal to look for financial assistance from other places. If you are a first time borrower and have your doubts about borrowing,  here are a few smart tips you need to evaluate before you start borrowing money: 1. Savings Have you ever thought of investing or even buying something? Sometimes, you might wish to purchase a home or a car. All this is possible if you work smart. The first step is to inquire how much you need, then come up with a plan of how to achieve that amount. The best way to get this amount is by saving. Sometimes, savings might take time. If you go to the bank with a certain amount of money and inquire for more, you will stand a better chance of receiving the money. In addition, your savings will have reduced the loan by a certain percentage. This will mean that you will spend less time paying up the borrowed money. In short, you will have used a smart method to borrow money that you didn’t have in the first place. 2. Penalties Life is full of surprises. No one plans for bad things to happen. However, that shouldn’t stop you from achieving your goals. If you are going to borrow money, it is prudent to think of the penalties just in case things go sideways. Some financial institutions issue harsh penalties which may leave you in a bad financial state. Get yourself a place that will work with you even on those rainy days where you might delay

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