Emergency fund: What it is and how to start yours
It’s never too late to start your emergency fund.
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Zain Johnson (standing in for 702 and CapeTalk’s Africa Melane) speaks with Thopi Mhloli, Head of Savings and Investments for Personal and Private Banking SA at Standard Bank.
Listen below:
An emergency fund is more important than you realise.
Even if you’re on a tight budget, it is possible to start saving, no matter how small.
Having money set aside unexpected emergency expenses such as a trip to the emergency room or a flat tire will not put you in further debt.
To make saving easier, Mhloi recommends keeping your emergency fund in a separate bank account and automating your contributions.
Treat it like any debt order so it is consistent, a non-negotiable and is part of your monthly routine.
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“It helps ensure financial stability, it ensures that you can avoid costly debt, and it ensure that you can also have peace of mind.”
– Thopi Mhloi, Head of Savings and Investment – Standard Bank
The fund should only be used for unexpected expenses that could significantly impact your financial stability.
“An emergency fund is not for vacation, it’s not for luxurious purchases or impulse buying.”
– Thopi Mhloi, Head of Savings and Investment – Standard Bank
Scroll up to the audio player to listen to the discussion