Why have an emergency fund?
How much should I have in my emergency fund?
Aim for this if you have no children or others depending on you and an easy-to-replace job
Most people should aim to have 6 months of expenses covered in a readily accessible account
Aim for this if your income fluctuates (especially if your job is highly dependable on commissions)
Tips to help you build your buffer
Saving even RM50/week (that’s RM2,600 a year) is a great start.
• Use credit wisely – Track your spending to be aware of what you have
• Curb impulse buying — stick with your list
• Avoid fees (late charges, minimum balance, ATM fees, etc.)
• Plan ahead for big purchases
• Avoid cash advances
• Use direct deposit
• Jump start your savings with a tax refund or other windfall