• From tenderpreneurship to true entrepreneurshipJune 27, 2025
    BAKANG PHUTHEGO BUSINESS WITH BK RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative Be a problem solver – Tips from tech-preneur Mothooagae   In the early years after independence, Botswana stood out as a… Read more: From tenderpreneurship to true entrepreneurship
  • Digital Public Infrastructure as a Strategic ImperativeJune 27, 2025
        RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative Be a problem solver – Tips from tech-preneur Mothooagae Dr Dimakatso Polokelo  Digital public infrastructure (DPI) is emerging as a core component of socio-economic… Read more: Digital Public Infrastructure as a Strategic Imperative
  • ILLEGAL WILDLIFE TRADE RISINGJune 25, 2025
    SOLOMON TJINYEKA editors@thepatriot.co.bw RelatedPosts ILLEGAL WILDLIFE TRADE RISING Be a problem solver – Tips from tech-preneur Mothooagae UDC impress BagaMmangwato   Illegal wildlife trade is escalating in northern Botswana, specifically in the pristine Okavango Delta, following a gruesome discovery… Read more: ILLEGAL WILDLIFE TRADE RISING
  • Be a problem solver – Tips from tech-preneur MothooagaeJune 25, 2025
    STAFF WRITER editors@thepatriot.co.bw RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative ILLEGAL WILDLIFE TRADE RISING Local techpreneur Ogone Mothooagae has urged upcoming entrepreneurs to focus on identifying a problem that urgently needs to be… Read more: Be a problem solver – Tips from tech-preneur Mothooagae
  • UDC impress BagaMmangwatoJune 24, 2025
    Kgosi Khama happy over regaining control of Serowe kgotla Bangwato curiously await BDP apology from Balopi BAKANG TIRO editors@thepatriot.co.bw RelatedPosts ILLEGAL WILDLIFE TRADE RISING Be a problem solver – Tips from tech-preneur Mothooagae UDC impress BagaMmangwato   Residents of… Read more: UDC impress BagaMmangwato
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Sunday, June 29, 2025
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Subscribe
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

Emergency fund planning

patriot by patriot
January 25, 2021
in Business
245
0
491
SHARES
1.4k
VIEWS
ShareShareShare

The extended Easter holidays are amongst us and the excitement can be felt in every corner. In earlier articles, we discovered that Resource Management goes beyond cash management. It firstly includes knowing what resources we have in our possession (cash, property, car, talents and so forth) as well as merging them with our financial and lifestyle goals. It also includes knowing how much we actually earn and knowing our true cost of living. We further categorised our budget planning into Rate 1 Factors, Rate 2 Factors and Spontaneous Factors. Rate 1 Factors consist of pure savings, retirement savings, investments and personal development activities. Rate 2 Factors consist of social events, vacations and other luxuries. Spontaneous Factors consist of unexpected events such as taking care of sick relatives, funerals, weddings, car damages and accidents, thefts, property damages and fires. All these components of resource management are additional small steps we take to live our best lives whilst working towards achieving our financial and lifestyle goals.

Some of us may have been aware of the upcoming holidays but failed to properly plan. Failure to properly plan not only brings us stress but also reduces the happiness we would have had otherwise. Once again, let us not make decisions when we are stressed or in a state of hyper emotions. This will help us avoid costly avenues such as unnecessary debt accumulation or raising finance even around holiday season.

RelatedPosts

From tenderpreneurship to true entrepreneurship

Digital Public Infrastructure as a Strategic Imperative

Be a problem solver – Tips from tech-preneur Mothooagae

Our financial planning topic for this week is EMERGENCY FUND PLANNING. An emergency is an unexpected event that tends to happen to all of us in the journey of life. The word emergency also describes the immediate attention required by this unexpected event. Planning for such events will fall under our Spontaneous Factor category in our Resource Management. In the same mindset, an emergency fund houses savings which we only use for emergencies.

Why we need an emergency fund: medical aid or medical insurance costs; loss of employment – such as retrenchment; loss of income – such as being demoted or taking unpaid employment leave; loss of business – through insolvency or liquidation; damage to property – because of theft or regular house maintenance repairs; car repairs; lawyer fees – for divorce, criminal cases or other disputes; separation from a spouse; funerals; and weddings.

An emergency fund also gives us a peace of mind to not be desperate to sell our assets when the market is not ready to offer a profitable return.

How much should I have in my emergency fund?

Professionals recommend an amount equal to: three months of our monthly salary – or the time depending on the chances of you finding new employment OR six months of our living expenses – most especially if we have a strict debt repayment schedule. We may elect to save more than these amounts. But, because we have proper financial planning which includes diversified investments, insurances and funeral policies, these amounts are reasonably adequate for our emergency fund.

Where to keep an emergency fund: A savings account; money market fund; and other liquid investments.  

Characteristics of an emergency fund are that funds that can be readily available within a week or less; flexible input of funds; flexible withdrawal of funds; and low maintenance costs.

Be mindful that the time it takes for us to access our emergency fund cash is prolonged by how much interest or risk profile our fund stipulates. The higher the interest return or the risker the investment vehicle, the longer it may take to withdraw funds in the case of an emergency.

We may not know what these holidays and the future will bring but, we can be better prepared with having an emergency fund. Every thebe counts, and just like building up a savings account, we do the same to build up an emergency fund. We also need to remember to always replace the funds we use out of our emergency fund as well as keep it updated with our current lifestyle. As we are getting closer and closer to achieving our financial and lifestyle goals, continue to be focused and develop a thick skin to only use your emergency fund for only emergencies.

Related

Tags: emergency

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Efficient Infrastructure Development

Next Post

BTO exhibits at World Travel Market Africa

Related Posts

From tenderpreneurship to true entrepreneurship
Business

From tenderpreneurship to true entrepreneurship

June 27, 2025
Digital Public Infrastructure as a Strategic Imperative
Business

Digital Public Infrastructure as a Strategic Imperative

June 27, 2025
Be a problem solver – Tips from tech-preneur Mothooagae
Business

Be a problem solver – Tips from tech-preneur Mothooagae

June 25, 2025
BoB warns banks
Business

BoB warns banks

June 23, 2025
BIHL blames Letshego for earnings decline
Business

BIHL blames Letshego for earnings decline

June 17, 2025
Redefining banking through innovation
Business

Redefining banking through innovation

June 16, 2025
Next Post
BTO exhibits at World Travel Market Africa

BTO exhibits at World Travel Market Africa

Please login to join discussion
  • From tenderpreneurship to true entrepreneurshipJune 27, 2025
    BAKANG PHUTHEGO BUSINESS WITH BK RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative Be a problem solver – Tips from tech-preneur Mothooagae   In the early years after independence, Botswana stood out as a… Read more: From tenderpreneurship to true entrepreneurship
  • Digital Public Infrastructure as a Strategic ImperativeJune 27, 2025
        RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative Be a problem solver – Tips from tech-preneur Mothooagae Dr Dimakatso Polokelo  Digital public infrastructure (DPI) is emerging as a core component of socio-economic… Read more: Digital Public Infrastructure as a Strategic Imperative
  • ILLEGAL WILDLIFE TRADE RISINGJune 25, 2025
    SOLOMON TJINYEKA editors@thepatriot.co.bw RelatedPosts ILLEGAL WILDLIFE TRADE RISING Be a problem solver – Tips from tech-preneur Mothooagae UDC impress BagaMmangwato   Illegal wildlife trade is escalating in northern Botswana, specifically in the pristine Okavango Delta, following a gruesome discovery… Read more: ILLEGAL WILDLIFE TRADE RISING
  • Be a problem solver – Tips from tech-preneur MothooagaeJune 25, 2025
    STAFF WRITER editors@thepatriot.co.bw RelatedPosts From tenderpreneurship to true entrepreneurship Digital Public Infrastructure as a Strategic Imperative ILLEGAL WILDLIFE TRADE RISING Local techpreneur Ogone Mothooagae has urged upcoming entrepreneurs to focus on identifying a problem that urgently needs to be… Read more: Be a problem solver – Tips from tech-preneur Mothooagae
  • UDC impress BagaMmangwatoJune 24, 2025
    Kgosi Khama happy over regaining control of Serowe kgotla Bangwato curiously await BDP apology from Balopi BAKANG TIRO editors@thepatriot.co.bw RelatedPosts ILLEGAL WILDLIFE TRADE RISING Be a problem solver – Tips from tech-preneur Mothooagae UDC impress BagaMmangwato   Residents of… Read more: UDC impress BagaMmangwato
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?