Sunday, September 9, 2012

Raising emergency household fund !!!

I am working from last 7 years. During this time, I have taken some good financial moves, like buying own house (though with 33% mortgage).

When Ira has not been born, we were typically free birds. We were eating out a lot and  buying stuffs that we hardly used. But then also, we were able to save one salary and raise emergency fund.

 The finance blogs say that you should keep 6 month's salary as emergency fund. Now, be realistic!! You can save up to 6 months' household expenses as emergency fund...Here I am sharing my ways to save for raising emergency fund.

  • Allocate some amount every month and keep it in one separate account.
  • Don't use that money when you are tempted to buy fancy items.
  • You can raise emergency fund by opening recurring deposit in bank. Keep it as an open ended account so that you can withdraw as and when needed.

Ok, now as your emergency fund is built up.. Will you stop saving money? No... Now do one thing... Keep saving at the same pattern.. You can use that parked money to buy stocks, mutual funds, gold or bonds and earn interest on this..

This is how I do.. How do you save for emergencies..Do share..

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