Why you should think about having an emergency fund

When it comes to thinking about an emergency fund you should take a number of steps to ensure that should the worst happen and you find yourself out of work that you have enough money to pay your essential bills until you can find more work.

Image credit

Here are some tips to get you started.

Look at your outgoings

In order to be able to save enough money into your emergency fund you need to have an idea of what your essential outgoings are. This will include looking at your mortgage or rent and your utilities as well as your food bill costs. The total of these bills will give you an indication of your essential monthly commitments.

Image credit

Give yourself enough time

If you find yourself out of work you need to give yourself enough time to find other work. This can take a number of months, which is why financial experts will advise you to have 3 months worth of your essential outgoings saved for such an eventuality.

Getting advice

Speaking to a financial adviser is a great place to start as they will use the IFA back office software that you can see at places like https://www.intelliflo.com/financial-adviser-software to help build an overall view of your financial situation and help you to plan your emergency fund appropriately.