Experts reveal the importance of an emergency fund
MELBOURNE, AUSTRALIA, Jan. 26, 2022 /24-7PressRelease/ — Every individual, regardless of financial situation, age or background, is strongly encouraged to set aside a portion of their savings in an emergency fund. Unexpected bills, loss of income and other surprise expenses can often cause unprepared people to scramble for funds or get into debt. Leading Islamic financial services provider, Hejaz Financial Services, reveals why an emergency fund is essential and their top tips for emergency financial planning.
According to Hejaz Financial Services, an expert in halal home loans, research found that 21% of Australian households reported having less than $1,000 in cash savings. The same research shows that nearly a quarter of Australian households say they would only be able to maintain their current lifestyle for around a month if they suddenly lost their income; 11% of households would maintain their lifestyle for only two weeks.
The amount needed in an emergency fund differs from one individual or household to another and depends on a number of factors: lifestyle, current savings, income, recurring expenses, etc. will affect the amount a person will need in their emergency fund. Hejaz Financial Services suggests that individuals calculate their current savings amount, expected income over the next year, and likely expenses over the same period. This will provide a complete and accurate view of their financial situation. The sharia loan expert advises Australians that setting aside three to six months of living expenses will be a good starting point.
Building an emergency fund often takes discipline and time, especially for people starting from scratch. Hejaz Financial Services recommends breaking down the goal amount into achievable goals: give up a take-out coffee a few times a week and invest the money in savings instead, set aside a fixed amount from each paycheck or concentrating any secondary income streams in savings.
Leaders in Islamic finance, Hejaz Financial Services, offers a full range of Sharia-compliant financial services, from halal loans to savings plans and everything in between. Contact them to learn more about their services today.
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