How to be prepared for a financial emergency

 

Save for a rainy day

The classic received wisdom is you should have the equivalent of three months’ salary tucked away in case disaster strikes. To make that a bit more palatable, those of us without any savings should try to put aside at least €20 a week. That’s €1,040 a year. That could mean you need to give up your coffee shop trip on the way to work or cut back on a few pints or glasses of wine down the pub.

Contact us for a free budgeting tool to help you see where you’re spending and look for things to cut back. If you prefer good old pen and paper, write down everything you spend in a month, right down to the odd chocolate bar or newspaper. You will be surprised at how much you can save once you start this process. Even if €20 a week isn’t realistic, try to save what you can.

Where to put your savings

Once you have got some savings building up, don’t just hide them in a coin jar or in a drawer – start earning interest on them. The best place to look for a decent rate right now, with instant access to your money, is a Deposit account. There are some available that will give you a fixed rate of interest for a fixed term and also give you access penalty free to your money when required. Contact a Financial Broker for the best interest rates available right now:

A contingency credit card

If you really can’t save up a decent emergency fund, then think about getting a credit card so you have something to use in emergencies. Remember it is only to be used for an emergency.

If you have difficulty resisting the temptation to spend on a card, then you could freeze it in a block of ice in your freezer or give it to a trusted family member or friend to keep hold of. Just be sure you can access it quickly in an emergency.

This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.

Posted in News and tagged , , , , , , , , , .