Licensed Money Lender Personal Loan Bukit Timah

Two in three Singaporeans do not have enough financial buffer to allow them to maintain their lifestyle beyond six months, according to an OCBC survey in 2020.

With the Covid-19 pandemic affecting people’s financial stability worldwide, a rainy day fund should be part of every person’s finances to provide much-needed security when unexpected expenses occur.

In general, you should save 5-10 percent of your income on an emergency fund. And according to financial experts, three to six months’ worth of emergency funds is a good idea. While it’s a rule of thumb if you want to know more about how to build your safety net, read on.

1. Create a Budget

To create a budget, you need first to calculate your monthly living expenses and income. If you have already determined how much money you have left, you can set aside a portion of your income for your emergency fund every month. 

To know how much to save depends on your lifestyle. Some stick to the rule of thumb, while others prefer to save more to cover non-essential wants.  

2. Set a Savings Goal

You should save at least 20% of your income, according to financial experts. To stay true to your goal of saving every month, you can automatically transfer funds to your savings account.

You can start small if you cannot commit to set aside at least 20% of your salary. Small victories and little wins deserve to be celebrated!

3. Save Your Tax Refund

When you file your tax return, you should still think wisely. You can split your refund in many ways– investing, starting a side hustle, saving for retirement, saving in a high-yield savings account, among others. 

You can also consider having the money directly deposited into your emergency savings account. 

Where To Keep Your Emergency Fund

The purpose of your emergency fund is to have the money immediately available in case of urgency. That’s why online savings accounts are among the common places to keep your money.

A high-yield savings account is your best option. When choosing a savings account, look for the higher than average interest with no monthly fees. 

Some popular high-interest savings accounts in Singapore include UOB One Account, OCBC 360 Account, and DBS Multiplier account. 

Takeaway

Emergencies are inevitable, and the best way to deal with unforeseen events is to prepare. The best time to start saving for your safety net is as soon as you can. Even small amounts can make a big difference in financial emergency readiness.  

In case of emergency, if you haven’t saved enough for the unfortunate events, you can always count on licensed moneylenders, such as 1 Fullerton Credit to provide you up to six times worth of your monthly salary. Bukit Timah Money Lender Singapore will help you with your financial needs. Licensed lenders can only charge you from 1-4% interest rate per month and allow you to pay the loan for up to one year.