
Budgeting Can Help You Cultivate Saving Habits For Emergency Purposes
Cultivate Saving Habits
Budgeting can help you cultivate your savings habits. Without a well-organized savings plan,
achieving your financial goals, such as purchasing a home or car, furthering your education, or
establishing a retirement fund may be difficult.
You should save at least 10% of your monthly income for savings. It would be preferable if you
could increase your savings rate from 15% to 20% to have more money for the future.
A Guide To Cultivating Saving Habits
Saving Before Shopping | ● Save at least 10% of your income. ● Utilize automated savings through the salary deduction, auto-debit, or similar schemes. |
Motivate Yourself By Establishing Financial Objectives | ● Set realistic objectives to motivate yourself to save. You can decide on short-, medium-, or long-term objectives. |
Make Good Saving Habits A Challenge | ● After saving 10% of your income, challenge yourself to increase the amount of savings slowly. |
Partially Save The ‘Durian Runtuh’ | ● Contribute to your savings each time you receive money, such as a bonus or a cash reward. ● Boost your monthly savings if you get a raise. |
Saving For A Financial Emergency
Unexpected situations or emergencies can sometimes cause you to lose the ability to find an
income. You might also need a lot of money in a hurry to solve the issue.
Emergency funds are typically used to cover expenses for job loss, major health issues, or the
cost of fixing damage to your home or vehicle. All your bills are still due, even if you or your
spouse lose their job!
You must have the savings to deal with this situation. As a basic guideline, you should have
enough funds to cover your expenses for three to six months. The situation will worsen if you
have to take a loan to cope with the issue.
Along with helping you prepare for emergencies, the budget can also help you save for
expensive purchases while enhancing the value of your net property.