We have all been faced with unexpected expenses. How do you manage this? Are you paying attention each month to plan just in case?
This is a great question, thanks for asking!
We call this a “rainy day fund” or an emergency fund the money you put into this fund is only for real emergencies.
Traditionally, you should keep enough money in your rainy day fund to be able to finance your essential costs of living for at least three months.
So, if you spend €1000 a month on rent, food, insurance, and whatever else you can’t live without, you should aim for at least €3000 in emergency savings.
We recommend saving 20% of your monthly net income untitl you have reached 3-6 months of your essential living costs.
If you need more information about this topic please don’t hasitate to ask.