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:
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