Emergency funds.

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Immediately you start investing this obsession comes with it because one thing that comes to your mind is to increase your stake or increase your investment which is not bad but can be detrimental to your journey. Even as we are doing the right thing it is better to do it properly and one of the mistakes we do as an early investor is not having emergency money.

Emergency money doesn't always seem like a big deal in the beginning because there is this belief that we might not need anything until the situation arises that leads us to us taking a loan or destroying our investment plan. Financial emergency can be anything and most times we can not always predict them, they hit us so hard that we will be forced to spend by all means.

If you asked new investor to save emergency funds they don't always see the need for it but as time goes on experience teaches us better ways to prepare for it. After paying for our bills which are the important part of our separate funds another funds to consider are the ones for the unpredictable event that happen once in a while but we can't escape from and a good example is our health.

Most people are smart enough to prepare extra funds ready for their day to day bills and after that they invest whatsoever remaining with them but fail to plan for unseen circumstances which is why it is always good to have extra funds saved somewhere to tackle this situation at all times. Most times when this unexpected expenses showed up we felt unlucky but we showed have done better by preparing them.

Conclusion

It is always very good to invest but we must make sure we plan our life well by investing healthy, investing in a way that won't makes us miserable or make us beg at the end of day. We must plan for emergencies at all times and we can do this by saving 10% of our income somewhere or doing anything that works for us along as we save ourselves from these emergencies.

Posted Using LeoFinance Alpha