Fix Your Money Woes Today

Davelle Lee zeroes in on four major problems women usually encounter when managing their finances and how to fix them.

- Davelle Lee

“I DON’T HAVE MONEY FOR EMERGENCIES.”

You know you ought to have an emergency fund, but just can’t seem to squirrel away the money for it every month. Should an unexpected crisis occur, you’d be completely unprepared. But don’t panic.

Anna Haotanto, chief executive officer (CEO) of online financial and career guide The New Savvy, says the first thing to do is assess what your needs in an emergency would be and how much money you’d need for it. “Distinguish between your actual needs – that is, your living expenses – and your wants,” says Anna.

Anything that isn’t necessary in your daily life is a want – and your emergency fund does not need to cover it.

Next, use a goal-based investment approach. Bhaskar Prabhakara, CEO of Trackwealth, an online finance and wealth management platform, says, “Divide your savings goals into investment pots for each of your potential emergency expenses.”

You’ll want to save enough to cover at least six months of living expenses. This gives you a buffer to pick yourself up, especially if you’ve lost your source of income. “Don’t make excuses for not saving, like telling yourself that you just aren’t disciplined. Make your emergency fund a priority, no matter what,” says Anna. “The anxiety and stress that come with an unforeseen crisis can be minimised by this small effort.”

If something unforeseen does happen, and you don’t have enough stowed away, the first thing you should do is approach family and friends for financial assistance.