Financial Security - Emergency Funds
Date: 17 Dec 2024
Building long-term financial security
A secure financial future needs more than daily saving—you need a reliable foundation that stands strong in tough times.
Let's look at one of the core elements of long-term financial security.
Emergency fund realities
39% of New Zealanders (over 1.5 million of us) can’t access $5,000 within a week without going into debt if we had to pay for something unexpectedly, leaving us incredibly vulnerable.We've all felt that financial emergency pain! A broken appliance, a smashed cellphone, a fender-bender, or even an unexpected financial medical bill.
Big or small, any kind of urgent expenses that we're not prepared for, hurt the most. And can end up causing long-term debt if our only solution is credit cards or loans.
Building an Emergency Fund
Make a start, even if it’s $1 a week! Just start building that fund.
Being able to access money in an emergency is a key indicator for being financially resilient and prepared.
Your emergency fund should cover:
- Housing and utilities (3-6 months)
- Essential food and medications
- Insurance premiums
- Simple transportation costs
- Minimum debt payments
You can find some great ideas for getting started in our earlier blog:
Creating your savings frameworkRemember, that even modest emergency funds started today can build financial security for tomorrow!
Think of emergency savings as a regular bill—it's not optional.
The power of small actions
Small, steady actions creation lasting progress.
Smart financial planning takes you beyond simple saving. Building reliable emergency funds creates a strong financial base that supports your current needs and future goals.
Your positive money choices today move you closer to your long-term goals - whether building emergency savings, planning for retirement, or growing wealth through investments.
