Assess The Sufficiency Of Your Emergency Savings

#365 Days Of Financial Capability – Day 8

What’s worse than not having emergency savings? It is having emergency savings that cannot support you in the event of an emergency.

In the last one year, we have had high inflation plus a devaluation, which might have shrunk the purchasing power of your emergency savings.

In the last one year, the size of your family might have increased, meaning the emergency savings you had last year may not be enough for this year.

Emergency savings should be able to cover 6-9 months of living expenses. You may even have a long term plan to get to 12-months cover.

You should also take into consideration the variability of your income.

You also take into consideration if your family is a single income or dual income household.

About Thrive Financial Advisors

We are a financial education company with the mission to spread the message of financial capability – the knowledge, confidence, and opportunity to act on financial matters.

Ready to develop your financial capability and become #Fintelligent?

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