How much of our income should be for emergency purposes.

[CALVINDOL]

There is literally no individual on planet earth that is above or superior to the encountering of emergency activities this is possibly due to the fact that we all are imperfect humans and from time to time we will always involved in activities that will lead to emergency possible because our world in particular is an imperfect environment . Day by day emergency could take different forms and in different categories possibly an individual who may not be properly informed that he or she would encounter visitors on a particular day could count down to be an emergency activity , another example of how an emergency activity could come out to be is when an individual possibly become sick or any member of his family become sick and need proper medical attention . You possibly can leave your own emergency situation that you have encountered on the comment section .

Talking about the amount of money that should be set aside from your income in order to handle emergency activities , you must understand that emergency activities is an unforeseen occurrence and could be in different size and in different shape but whatever the case may be , it usually need monetary assistance in order to be taken care of . There is no exact amount of money that should be set aside for emergency activities but what we understand is that the money should be of considerable amount and of reasonable figure . And also the money set aside for carrying out emergency activities should not be an alternative to use when we possibly feel the need to get entertained or have fun .

 

[mmrahmantitu]

Generally, such expense should be at least 20% of your gross income. But, if you’re in an emergency, it should go up to 40%.

There are a few factors behind this 20-40% rule, the biggest being how much you can afford to lose. If you can afford a lot of money, you can afford to lose less. If you can only afford a little bit of money, you need to ensure that it is being spent in a way that protects it. And finally, the other part is how much of your money is being used for emergency purposes and how much is being used for longer-term goals. If all of it is used for emergency purposes, then less money is available for longer-term goals.

Generally, 20-40% of your gross income should be reserved for emergencies.

 

[Ithedicious]

The point is that emergency needs does not happen all the time , Sometimes it could be once in a year and sometimes it could be twice in a year but this can never happen on monthly basis except in a very rare occasions. Some people like me personally I saved at least 5% of my monthly income for this purpose alone and the saving has been in a different bank account for almost five months without encountering any emergency situation that needs the money . That does not mean that I will stop paying into the emergency fund account .

Well it depends on how much people are earning in a month , but no matter how much we are earning your emergency fund should always be a reasonable amount of money that will likely takes you in anything that will arise . That's the most important thing .

 

[Shigobad2020]

We are in the country where feeding yourself is always difficult because the amount you are earning might not even be enough form your three square meal , so it makes it very difficult for most of the people to save because they have more responsibility they need to take care of , and that has been a thorn in their flesh , thereby hindering them from saving ,
If you have a work that is paying you at the end od each month or weekly , then you must see it fit to have an emergency fund for the future incase of future occurrences that might warrant you to touch the money in your savings .
I normally have a list of what I need and have scheduled it with my monthly payment so it wont affect my savings , I normally saves around thirty or fouty percent of my monthly earning .

 

[TOZZIBLINKZ]

In life majority of people has so much concerned about the actual making of enough money instead of Mostly becoming concerned about the actual managing of money and being able to successful allot it to different priorities in life . For example with the use of money majority of individuals can totally care for future emergencies that are more likely to take place in the future and it is true that in the future they are so much filled with unforeseen occurrences and circumstances that to some extent we totally need the existence of money to resolve and to successfully handle adequately .

20% to 40% of an individual's income should be what is allotted out of an individual's income for the purpose of carrying out emergency purposes . The reasons are because emergency purposes at times totally need a great deal of money involvement so as to adequately resolved and so because of these 20% to 40% is considered to be the considerate and reasonable amount out of an individual's income that should be allotted for the purpose of sorting out emergencies and any other emergency related activities .

 

[Shaf]

If you want to determine how much to save from your income for emergency funds, it would be best to start from scratch and do your research about how much it would take to solve the most common emergencies around you.

This will give an idea of what to work with, since everyone earns differently and we all have different budgets. It also depends on the type of emergency you want to save for.
In my country, the most common emergencies are health related and since we have no insurance for majority of the citizens, the cost can be quite steep.

An average income earner will have to save about 5% monthly for 2 to 5 years to get a decent amount. In some cases, some people go for health insurance instead. Considering that other emergencies may come up that are more expensive and you'll need t have moral savings account in addition to your usual expenses, one can increase the savings to 10% per month.

 

[Mika]

I have a simple budgeting rule. I use the rule of 50/30/20, where I spend 50 percent income on my essentials such as rent, food, fuel, bills, etc. I use 30 percent of my income for my wants such as buying new pair of sneakers or saving for a vacation or a new phone, etc. I save 20 percent of my income. I save it in a normal saving account and when the money accumulates, I move it to high-yield saving accounts such as fixed deposit bank accounts. I don't keep my entire money in my saving accounts, I also invest. Sometimes when the money I have for my wants becomes surplus, I also use that money for my investment. I don't have emergency funds, but I have my money in saving accounts, and in emergency situations, I use that money. For example, when I lost my job, I use my savings to pay bills.