Save for an emergency fund

Sep 22, 2020 | Private Wealth

An emergency fund is money you set aside to cover urgent or unexpected costs. This could be car repairs, unexpected travel or an urgent medical bill.

It provides a financial safety net so you don’t have to borrow money if something happens to you or your family.

How much you need in an emergency fund

Even if you can only save a little, make a start and keep saving. The more you can regularly save, the better.

If you put $20 a week into a savings account, you’ll have over $1,040 by the end of the year. That’s the start of a good amount of savings to give you some financial breathing space.

Use our savings goal calculator

See how putting aside a little each week can help.

Plan for the future

If you’re thinking long term, it’s worth having a bit more put aside. This can help if you’re unable to work for a while — for example, if you take some time off work to care for a family member.

A good target is to have enough in your emergency fund to cover three months of expenses.

<a href="https://ugc.net.au/author/louis/" target="_self">Louis van Coppenhagen</a>

Louis van Coppenhagen

Louis is a Financial Adviser with 15 years experience, three university degrees and specialist qualification in Aged Care.

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