Emergency fund during Coronavirus (Covid-19) outbreak
- March 23, 2020
- Posted by: admin
- Category: Investment
Financial planning happens to be very important and is all about saving up money for future use, especially in times of need. While preparing a financial plan it is always advisable to have an emergency fund ready for at least three to six months of use for a steady flow of money even during a crisis period. With the current economic scenario being so unstable, emergency funds are acting as a boon to the investors who had earlier invested in it and are presently going through a crisis period. In a situation like the current one, where a pandemic (Coronavirus or Covid-19) has disrupted our lives and closed our sources of income, we learn the importance of an emergency fund. It’s not clear when things will be back to normal and a steady flow of money will upraise the economy, and this is the time where one’s emergency funds come into action for the daily essential needs. Those who had foreseen a situation like this and had invested in an emergency fund are not in panic today, because they have already stocked their money earlier in form of an emergency fund.
Emergency funds are a necessity and are strictly to be used to fulfill the essential needs and not for buying assets. We always have an option to save our funds in different forms, but liquid funds or overnight funds are the best ways to create your emergency fund since it gives a higher return than a savings account’s interest or a fixed deposit.
So, it’s always a wise decision to invest in an emergency fund for a crisis period which may occur at any time. Don’t think much and start investing in emergency funds for your own good!