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Covering Unexpected Expenses
By Capitalist | February 8, 2009
“Life is what happens when we are busy making other plans.” The idea is to get adequately covered so that you can meet out unexpected expenses when they present themselves. It can be a medical emergency or a mediocre basement leakage. Emergency expenses can come in anytime and it’s so much more comforting to know that you can tackle them.
Establish an emergency fund. You can do so through deducting a percent of your monthly income and saving it. You can ask your bank to disburse only 70-80 percent of your salary to you each month. This can help with saving the remaining 20 percent. It doesn’t matter if you’re an Aviva executive with a lucrative salary or a CSR on minimum wage, having an emergency fund can help you through difficult time and at the same time change your life.
Open a savings or a recurring deposit account with a bank. This way you will be forced to save. Invest money in fixed deposits, life insurance, national saving certificate, mutual funds and stocks of blue chip companies. You can take money out in most of the cases to meet unexpected expenses.
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