BUDG027 How much should I have in my emergency fund? (531 words)

When times are tough financially or unexpected bills pop up, having an emergency fund set aside can alleviate stress. Unfortunately, many people choose not to or struggle to find spare cash to put aside. This article explains the importance of an emergency fund and offers clever savings tips to get your fund growing.

It’s the most common story financial professionals hear. Unfortunately, too many people fail to set aside emergency savings to see them through life’s hiccups. So when the inevitable happens, and an unexpected bill arrives, they are put under pressure to find the funds to pay it.

In turn, this leads to maxed out credit cards or taking out expensive short term loans. And so begins the bitter downward cycle of falling behind on essential bills and other regular payments.