Life is full of uncertainties. Have you ever concerned about being unable to generate income if something bad happen to you? So, preparing for unexpected is crucial as you can protect your income from the risk of unemployment, illness, and accidents.
With emergency savings, it can help you to protect you against unforeseen expenses and loss of in income. Start building your emergency fund which should be generally about 6 months of income. Recently, I apply this method on my investment which creating the ‘backup money’ in order for me to do further trading when market is down.
Mostly, my emergency fund will be placed into highly liquid accounts like savings account or short term fixed deposit so that it’s more accessible when there’s need for impulse spending. With this method, you are not only protecting your capital but you could earn some little interest as well.
Diversify Your Income