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Posts Tagged ‘creating a fund’

Now that you know what it is and what it does, here are some tips that may be useful for building your emergency fund:

* Depending on your income, determines a fixed percentage and considers that amount in your monthly budget. This way you know that the amount is already detached and can not be used in any other expense.

* Open a bank account specifically for the savings fund. Having the money saved will reduce the temptation to spend on other things at the same time, your savings will be generating income.

* If you filed an emergency and use part or all of the background, you should increase the percentage you save each month. Even a minimal increase, it will take less time to regain what you had.

* If your income increases, increases to the same shares for the emergency fund. The effort you make month after month will be rewarded with peace of mind to solve the financial crisis smoothly.

* You have two emergency funds, one for minors and situations one for major emergencies. The first will serve, for example, to repair the breakdown of an appliance or treatment of influenza. The second would be ideal to solve prolonged illness, greater self composure or affected by a natural disaster.

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