In this article, I would be giving you steps on How To Secure Your Emergency Fund. After going through the tedious process and disciplining yourself enough to finally have an emergency fund you should not just save it and if you see.
It is very important to properly secure your emergency fund so that it does not get lost through any means possible. Because your emergency fund can be the bridge between life and death. This is what brings us to how to secure your emergency fund.
Just like the way you secure your money or any other property your emergency funds have to be secured. Because if they are not properly secured a number of things can happen to them and we end up losing it. That is why on this article I have taken my time and given you a detailed procedure on how to secure your emergency funds after successfully building it.
How To Secure Your Emergency Fund
After you are finally accumulated the amount necessary in order to have an emergency fund you should not just keep it carelessly to lose it. This is why it is very important to know how to secure your emergency fund so that it can be used for the purpose it was created. So you need to know how to secure your emergency fund.
Or should it be ideal that you leave it in your savings account this is what we are going to be taking a look at today. The money that is in your emergency fund is the hard-earned money that you have worked a lot to channel to that purple. It should be kept with the utmost protection and security so that it is not lost because it is for a purpose.
That being said below are some of the ways to secure an emergency fund:
Keep it In A Safe And Secure Place
The first thing you need to know in order to secure your emergency fund is to keep your emergency fund in a place that is safe and secured. Your emergency phone is basically your lifeline when in times of financial problem so you should not be careless as to keep them in a high-risk saving account or any other risky investment.
It doesn’t matter whether the returns from this investment are pretty high you should not be risking your emergency fund as there is a chance it could be lost.
Keep It Where You Can Easily Access
Another way to properly secure your emergency fund for the feature is to keep the money in the phones in a place you can easily access. This is because an emergency can occur at any time and you may not have the chance to wait to withdraw the funds if it is kept in a place that cannot be easily accessed. Therefore keep your money in a place that can be easily accessed.
Where It Can Easily Be Withdrawn
It is a good idea not to invest your money in a place where you have to wait for a particular number of time before you can access your emergency fund.
Do not invest your emergency fund in long-term or tax-saving fixed deposits, National Saving Certificates or Recurring Deposits. Because this place is do not allow you to withdraw money anytime you like and there is usually a fee for premature withdrawal.
Don’t Keep Emergency Funds And Investment Funds In The Same Place
If you are the type that has an investment fund it should not be mixed up together with your emergency fund so that you did not end up using your emergency fund for investment. Because it is not every time that an investment is profitable your money might be lost.
Where Should I Keep My Emergency Fund?
Now that you have seen some of the places where you should not keep your emergency fund because this place is not secured let’s look at places to keep your emergency fund. Below I have listed some places where you can keep your emergency fund after it has been reached. This place does not have any more risk involved and your emergency fund is safe there.
- High-yield savings account
One of the best places to keep an emergency fund is and high-yield savings account. They basically pay high interest in keeping your money for a specific amount of time. But keep in mind your money cannot be accessed anytime you like.
- Sweep in a savings account
A sweep in a facility savings account is an account that allows you to withdraw when an amount over a set limit is channeled toward a fixed deposit. This means that you can withdraw money when you need cash from a sweep-in facility savings account.
- Short-term fixed deposit
A short-term fixed deposit account is another alternative 2 having a long-term savings account. As the term is short it makes a very good place to keep your emergency fund.
- Cash
You can always result to keeping physical cash as your emergency fund. Many people are doing this, especially those people that do not want to go to the bank.
FAQs
Where Can You Store Money Other Than A Bank?
There are so many places that you can use in saving your money if you did not want to save in a bank. You can keep your money in your savings account, you can also keep it in a certificate of deposit account, and so on. There are so many options if you did not want to keep your money in a bank in order to save it.
What Is The Best Place To Keep An Emergency Fund?
There are so many places that you can use in keeping your emergency fund. One of the best places for you to keep your emergency fund is simply to keep it in a high-yield savings account. This week actually earns you profit was having an emergency fund. There are also other places to keep your emergency phone which are very good and are listed in this article.
