Have you keeping any amount separately as an Emergency fund ?

India
December 13, 2012 10:45pm CST
As per the advice of the Financial Planners, that we should keep some amount separately which should be used only when emergency comes. We do not know what type of the emergency comes and when. The salaried person should not have money at the month end. As and when we get the salary we will pay for light bills,phone bills, loan and credit cards EMI, provision, grocerry, dress, school fees etc. In this case if any person required money at the month end for hospitalisation, etc what to do? They have to borrow from friends and relatives. Every time we are unable to do the same. So Just make an habit to deposit some amount in a separate account and thinking that this account will operate only when very very emergency comes. Are any one doing this habit? Have you experienced this type of emergency and money less time. Please.
1 person likes this
13 responses
• Philippines
14 Dec 12
Well, I currently have my emergency fund stocked right at a slightly high yielding deposit. However, I don't really try to make my emergency fund big as there are other investment areas that can optimize my yield rather than bank deposits. But I always try to put in a decent amount that can be harnessed during emergencies. My emergency fund is easily accessible and liquid. I think that having such kind of fund bring about a sense of security that you will always have money when you need it.
• India
15 Dec 12
Thank you Gulaman for your comments. You know the meaning of the emergency fund. In this world job security is not there in private sector. Due to recession and all some time suddenly the people may loss their job. In between to get the new job, during that gap of time people need to pay bills, rent etc. During that time also the emergency fund will help them. Have a nice day.
• Philippines
19 Dec 12
Yeah, one should be disciplined in putting up the emergency fund and using it according to its purpose only. If it is used to stuff other than an emergency, its essence is removed and the purpose gone already.
@Sreekala (32827)
• India
14 Dec 12
Saving some money for the rainy days is an encouraging thing. But one must have enough income to keep some money from it after meeting the other expenses. The cost of living increased all of a sudden and our situation, there is nothing left out after paying the monthly expenses. Fortunately we are paying some money as investment and that it is bit relieving.
• India
14 Dec 12
Hi Sreekala, how are you? i agree that cost of living is increased. But our earning is not increasing. But to make some emergency fund, why can't you reduce some expenses. If you want to make Potato curry for Chappathi, earlier you may take 4 Potato, now what can't you reduce to 3 Potago. Such a way you may try to reduce the expense in other expense also. Another I will tell you What Dalai Lama told that all the people are very crazy to make money by doing very hard work but they will not use a single paise for themself. But they are saving and investing not for them but for their children. What every we save it is not for us but for our children only. Small amount of your saving will be very beneficial for your children when they grown up or for their education, job, business etc. I think that feel will be very happy for any parents, am I right? Have a nice day.
1 person likes this
@Sreekala (32827)
• India
14 Dec 12
Hi Raja, I am fine and thank you for asking. I am trying my best to reduce the expenditure. But the real problem is kid’s education is so costly here, which is eating the lion share of our earning. We have to provide good education to them and can’t compromise on that. As you said, we are happy on giving a good platform to them.
@ShyBear88 (36612)
• United States
14 Dec 12
Right now me and my husband are unable to do this because every dime we have goes to our kids and buying them food and diapers. My parents help out a little bit but we cant' save much because of bills we have to pay and some debt that we have because of our roommate for last year which we don't see nor live with at all now.
• India
14 Dec 12
Hello Mam, I agree that now a days what ever we earn the money which will not be sufficient for a family spending. Every penny has to be spend in the particular month without keeping any balance. Living cost is too high. Our own expence we can cut down but children's school expense we have to accept. But I suggest you what ever it may be your earning keep at least 1% of your income in separately. Please do not touch it. If there is no any emergency occured, it will be help you after some months or year. Just start to keep at least 1 dollar per month. If anyone in your family is smoking then at least one packet sigar cost to be saved. Let us try. God Bless you. Have a nice day.
@ShyBear88 (36612)
• United States
15 Dec 12
My little ones aren't in school but diapers and pull ups aren't cheap these days and neither is milk and formula. I don't work I"m a stay at home mom and we can't put any money and side for anything at all, everything goes to the kids, rent, food, clothes and other bills that we have. Zero money is saved right now because we moved 10 weeks ago when my son was 6 months old. We live off of WIC, family, and we medicaid for our children. Nobody smokes in my house it's a nasty habit. Not every family can put money a side as you think they can it's not easy all of the time to do that when you live off of $8/hr.
• Leesburg, Georgia
14 Dec 12
When my husband was making good money before his injury we did save money each month... Once he got hurt we have not been able to save since! It has been a terrible year for us and things just seem to keep getting worse. My husband is looking for work and is having trouble getting a job! =( So, no right now there is no possible way to save anything. We are lucky we still have a roof over our heads at this point... If and when he gets another job we will be saving again.
@sharone74 (4838)
• United States
14 Dec 12
I am sorry to hear that you are struggling. I too am struggling, my boyfriend just got laid off from his job two months ago and he works in a very specialized field so it is not easy for him to just go out and find another job quick. Add to that my computer crashed and the one that I am using now will not allow me to do the work that I do online, so I am broke too and in need of another computer. Through it all though God keeps blessing us, giving us just exactly what we need at the precise moment that we need it. We too are lucky to have a roof over our head and keeping it there next month is a constant concern. Keep your faith, don't give way to doubts or fears. Just trudge through what you gotta trudge through to come out the other side stronger and better for it!
14 Dec 12
As of now, i still don't have any separate account for emergency purposes only however, keeping money for emergency purposes is good. We should learn how to budget our money.
• India
15 Dec 12
Thank you for your comments. Please start to have an account. If you are not possible to keep the account then keep some thing in the Piggy Box. Have a nice day.
@ravisivan (14099)
• India
14 Dec 12
prudhivraj welcome to mylot. it is good to keep some reserve. but it is not possible for salaried people always to do so if the salary is not high the prices are rising steadily. better start a recurring deposit for Rs.500 pm and keep it aside.
• India
15 Dec 12
Thank you for your comments Mr.Ravisivan, Actually I meant for the discussion to have the people to keep some money for emergency fund. This is not a recurring deposit for the future purpose. I have experienced several times that after 20th I will not have a single Rupee. Some time in month end I was struggle to have money for the doctor fees and medicine. In one occasion I had asked the school authority to pay some amount for the child's science exhibition etc. During that I had to borrow from my friends. In these occasion the emergency fund will help us. The money put in this account will not take if the matter is not that much emergency. Have a nice day Sir, thank you for welcoming to the Mylot.
@prashu228 (25542)
• India
14 Dec 12
I am not doing anything like that as of now. May be i will start it once i settle nicely with good job.
• India
15 Dec 12
I am very much happy after reading my discussion point you are thinking to have an emergency fund. God bless you to get a good job soon. To keep some small money there is no need to get a Good job. Have a nice day.
@jenny1015 (13378)
• Philippines
14 Dec 12
I used to do the same. But since I no longer have a job, it really is difficult to have spare each month. But I do try to save up a little whenever I earn from my online shop.
• India
14 Dec 12
Jenny. Thanks for the comments. I feel the person is not having job and to do the part time job. But still you are keeping some money from your online shop earning. Great. Do not take the money back if it is not that much emergency. Which is your online shop? Any way have a nice day.
• Philippines
14 Dec 12
It will be very hard for someone to keep some money if their expenses is greater than the income. I do not want to go through this again so I really tried to keep some money every month. It's easier for me because I'm single and don't have kids. I ditched my credit card so that I will not have credits at the end of the month.
• India
14 Dec 12
Thanks for your comments. At least you know the problem if the money was not there in month end. May be initially you may have trouble to keep some money separately. But when an emergency comes you will understood the need of an emergency fund. Thank you and have a nice day.
@jaiho2009 (38986)
• Philippines
14 Dec 12
This is easy to do for those who have big incomes. But for minimum wage earners those people hardly get the chance to save a penny. The prime commodities are soaring high in prices , house rents, electric bills ,water bills and everything are too increasing. Health insurance company are offering high monthly contribution as well- and it's not per family either, but per person. How can average earner afford to save for health and emergency funds... :(
@sharone74 (4838)
• United States
14 Dec 12
In the current economy it is not as simple as all that. Saving money indicates that you have a surplus of money beyond the cost of simply existing. There are not a lot of those people out there right now. Some just never save for a rainy day, either because it is always raining in their world or because they just don't have a surplus of cash. I do have one of those way-to-save checking accounts that deposits my change from any debit card transactions into my savings account, but I raid that whenever I get low on cash. I sometimes keep an emergency fund in cash around the house, but as little money as I have in it right now it had better be a pretty minor emergency!
@airasheila (5456)
• Philippines
14 Dec 12
good day to you, ideally, people should really save a penny for his/her future. hence, keeping an amount should not only be done just to allocate a fund for emergency use, rather, it should also be done for our savings. thus, it is really important to keep an amount for every change that you received whenever you are making a purchase.
@Angelpink (4022)
• Philippines
14 Dec 12
Yes , i tried to save for emergency cases. I experienced what it was to have none then you need it very badly and people whom you expect to lend a hand can't offer even a penny. Came to my mind , that no one can help us but ourselves only , lesson learnt ! From then on i earn to save even some centavos , during hard days i will no longer be panicking .