If one has an emergency fund or any other income source; he or she can always pull savings from and can rely on for a while?
Job world is becoming more complex and maintaining personal finance with one source of income is becoming tougher. Initially one might be happy when he or she gets a job. But as days go by one become dependent and compelled with his or her job, no matter they are satisfied with it or not. They do not dare to take risk of losing it for a day due to increasing pressure of EMIs, family needs etc.
Without an emergency fund as a backup plan they cannot dare to think beyond the present job, in search of a better one or manage for an alternate source of income. If you’re relying on your day job as your only source of income, you’re leaving yourself vulnerable. You need to create alternate source or fund to make your personal finance better for a balanced and peaceful life.
Few genuine reasons to plan an emergency fund or alternate sources of income are discussed below
- You might think your job is stable, but a job loss can happen to anyone at anytime for any number of reasons and the last thing you want to do is go into debt because you lose your job.It’s so easy to rely on credit for your basic living expenses when you’re under pressure to pay the bills, but it’s going to cost you later on.
- Having savings or multiple sources of income allows you the freedom to experiment and search for better suitable job.
- To achieve big financial goals one need a better financial planning as being able to achieve your financial goals quicker is pretty valuable, and there’s no denying that having more than one source of income makes financial independence more of a reality .
Therefore one needs to diversify his present income and be smart enough to create funds for emergencies. In that case one needs to manage time to create an alternative source of income and so start hunting for opportunities to find a better job or alternate source to satisfy increasing needs and also keep constant interest on his or her present job.