BQ Money Workout: Before You Even Think Of Saving, You Need An Emergency Fund

Just like a trapeze artist needs a safety net, your finances need one too!

(Source: BloombergQuint)
(Source: BloombergQuint)

Ever went to a circus as a child? If you did, you’d have seen trapeze artists defying gravity while performing feats of acrobatics.

But if you’d have looked closely, you would have also seen a safety net to protect them from an unintended fall. In other words, it was a provision against a contingency.

Similarly, when it comes to your finances, you too need a safety net. That, according to financial planners, is a contingency fund. A multiple of monthly expenses, this fund ensures that you’re never in a situation where you will have to borrow money in case of an emergency.

This episode of BQ Money Workout explains the importance of a contingency fund and how you can build one.

Watch the full show here to know more: