Building An Emergency Fund

What is an emergency fund? 

An emergency fund are funds that are available to a client at short notice in the event of an emergency or unforeseen circumstances.  Each client will have his or her own definition of what constitutes an emergency depending on the circumstances. For some clients an emergency might constitute car repairs and for others, school stationery. The amount needed in the fund will vary from client to client. 

How much should you save for emergencies? 

The general rule is that you must save at least three to six months of your annual expenses however given our country’s current economic climate, this is not always realistic. Once we sit down with you and understand your financial habits, we will be in a better position to assist and advice you how you can build this emergency fund up. 

At SWS, we believe that understanding why you need an emergency fund is of utmost importance. Get started today and book a consultation.