Use Digital Tools to Keep up an Emergency Fund
An emergency fund should be used only in the following kind of situations:
- You’ve lost your job, and need to continue paying rent, bills and other living expenses
- You have a medical or dental emergency
- Your car breaks down, and is your primary form of transportation
- You have emergency home expenses—e.g your roof is leaking, your toilet is overflowing, etc.
- You have bereavement-related expenses, like travel costs for a family funeral
If you don’t have an emergency fund saved, and these types of emergencies arises, you’d likely be tempted to use credit/debt to handle it, leading you into credit debt interest. Paying for emergency expenses on credit , if you don’t pay off your bill immediately, will cost you more, as you’ll rack up interest payments as you try to dig yourself out of debt. Having an emergency fund saved will not only save you more money in the long run, due to the fact that you won’t be paying interest on your expenses, it will give you peace of mind, knowing that you’ll be able to handle whatever life throws at you.
How can digital tools help:
- Create an emergency fund account online from your bank’s website or mobile banking application and have scheduled savings off your salary/income account.
- You can create a MoKash AutoSaving account that can be scheduled daily/weekly/monthly to collect some money and deposit it to your saving
- Regular monitoring of your saving account statement can be done using digital tools.
- If you ever need micro credit: MTN MoKash and Airtel Wewole may be better options than money lenders. Keep your Mbanking credit history strong.
FINANCIAL LITERACY: Use Digital Tools to Keep up an Emergency Fund MTN #MoKash Airtel #Wewole #DiFiExpo @BOU_Official @MoICT_Ug