Syndicate
Establishing an Emergency Fund
The last step before putting in functions a financial program is constitution of an emergency fund. This fund is usually composed by saving securities, money in a saving account or, through financial tools, which can be easily disposed of to confront any kind of situations such as the loss of the job, sickness or any other unforeseen expenses.
For most of the people such a fund should have an enough amount of money to cover normal expenses during three months; now then, when thinking of wealthy people, we should have to talk about an amount equal to the net income of between six months and year.
Even when your declaration of assets reflects a buoyant situation, you shouldn’t pass over, in the case of seriously continuing with your financial program, none of the previous contingencies.
Only after you have taken care of these previous steps for guaranteeing the economic health of your dear ones, will you feel in disposition of continuing with the structuring of a financial program.