Mad_About_Money_final Jan 2017 | Page 21

MadAbout

Money

WELL STOCKED UP EMERGENCY FUND SITUATION

When we think about emergency funds , we tend to think about it as a short term goal . Strictly speaking that might be true but its implications and benefits are for much longer term and that ’ s exactly why it features in our top moneygasmic situation list . Our Top 5 reasons for having a well-stocked emergency fund include :
1 . Takes away most of the money related stress , worries and anxiety and provides a sense of security of having a reserve if you ever get into an tight spot
2 . Softens the big blows of unexpected and sudden life events such as job loss or medical emergencies
3 . Features as one of the crucial finance management tools since if one can be disciplined enough to save for an emergency fund , he / she would be able to save up for any financial goal that the person might have .
4 . Acts as an intermediate source of finance between your income and your investments … that is , the half way mark where you can safely stand and use the money without disrupting any long term investments that you have
5 . Makes the wild stock market swings more tolerable and emotionally less damaging since you always know that your survival would never be at stake – a true moneygasm situation indeed !
A TRULY MONEYGASMIC
SITUATION WOULD
BE TO HAVE A WELL-STOCKED UP EMERGENCY FUND ! WELL , I DO REALIZE THAT YOU MIGHT NOT HAVE BEEN
EXACTLY THINKING ABOUT THIS , AS
IT DIRECTLY DOES NOT RESULT IN ANY ECSTASY FOR YOU PER SE … HOWEVER , IT INDIRECTLY
WORKS TOWARDS
KEEPING YOUR MONEY RELATED ECSTASY INTACT AND OVER LONG
TERM ! AND IF YOU ASK ME , THAT ’ S
EXTREMELY CRUCIAL !
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