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MONEY HABITS
Create a Just-In-Case Fund
11 October 2017
Nothing will ever keep you back with a just-in-case fund! I’m sure you have a savings account that you keep a close eye on. Why not create another, more specific account, to help you out of any difficult situations life throws your way while your savings for other, concrete goals can happily remain intact.
Is Security important to you – then you need a ‘Just-In-Case’ fund and you need one now.
This is a fund earmarked for emergencies, (anything from a busted fridge to a job loss) and creating one will give you peace of mind. Should something unexpected happen, your fund has fulfilled its purpose and your savings for other, concrete goals can happily remain intact.
Talking specifics, your ‘Just-In-Case’ fund needs to be equivalent to six months’ salary. And, if you have a mortgage, it should be housed in an offset account alongside it.
In fact, this’s where all your savings should be. This type of account offsets every dollar you hold in it against your loan balance. So, your emergency money can keep you relaxed and comfortable while also reducing your time in debt, getting you even more secure!
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product.
