I actually do not know about the emergency funds, until such time that I have heard about this topic in you tube through ANC Money. Emergency funds is a fund that is ready at any time if the need arise. According to one of the financial adviser that was interviewed in ANC Money, emergency fund shall be at least 3 to 6 months of the monthly expenses of a single individual.
I also learn that emergency funds can be place in an investment portfolio that can be withdrawn at a maximum of 3 days. All I thought is that emergency fund should be placed in the bank, but I learn that the bank is not the only option to place the emergency fund.
The technique is that we need to look for a place where it can give higher yield than that from the savings bank.
I still don’t have emergency funds but I have stocks through COL. I will start saving for the emergency fund amounting to 10% of my salary until such time that I can complete the 3 to 6 months emergency funds and I hope to start it soon.