By Irene Kamau
Tired of those endless “Fund Appeal” groups on WhatsApp? Let’s face it, life is tough; inflation’s soaring, the shilling’s shrinking, and unexpected bills keep popping up like uninvited guests. Unexpected bills, medical situations, and economic downturns can leave you feeling vulnerable. But what if there was a way to weather these storms with peace of mind?
An emergency fund acts as a financial buffer, providing security during tough times. Here’s how to create one:
1. Determine your target amount: Budget your monthly expenses to understand your essential needs (rent, groceries, utilities) and factor in any loans or dependents. Aim to save 3-6 months’ worth of these expenses to establish a realistic target.
2. Automate your savings: Set up a standing order to automatically transfer funds to your emergency savings account each month. This ensures consistent savings and reduces the temptation to spend.
3. Choose the right savings vehicle: Consider factors like ease of access, safety, and interest earned. At ABC Bank, we offer fixed deposit accounts for high-interest savings and pure savings accounts for those building a savings habit.
4. Maintain and replenish your fund: Periodically review your emergency fund to ensure it meets your current needs. Replenish it as soon as possible after using it to maintain its effectiveness.
Start building your financial security today. Ditch the “Fund Appeal” fatigue and remember, every penny saved is a penny earned towards financial freedom.