May 7, 2009 2
Buffer Fund
From our mom to our school teachers, and to banks and investment gurus, we always hear them preach about saving money. This is vital and important to our financial well being.
But are you aware that we must first have buffer fund before we even think of what to do with our money?
A buffer fund is the money you kept for crisis situations– like you lost your job or your business went bankrupt or you have a family emergency. Your buffer fund is part of your Savings but should be in a separate account. It has a cap and must be accessible in times of emergency.
How much should be our buffer fund?
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