BANKING

5 REASONS WHY YOU NEED EMERGENCY FUNDS

Published

1 year ago

5 REASONS WHY YOU NEED EMERGENCY FUNDS

Imagine living life without emergency funds.

We can see you squeeze your face a bit as you understand that there is a need for emergency funds at various points in life.

For the sake of formality, allow us to give context to the concept of emergency funds. Your emergency fund is the money that you keep aside for critical cases. In this case, it is not the money you’re using to buy bread when you crave it or the money you’d use to take a taxi to the office. Instead, as the name implies, the money will be kept and used for only ‘emergency cases.’

As you read further, you can spot some situations that would classify as emergency cases. However, this article is here to remind you that everyone needs emergency funds, and we will give you reasons to remember why you need emergency funds.

5 REASONS WHY YOU NEED EMERGENCY FUNDS

It would be horrible to be stuck in a situation that money can solve, but you do not have the funds to ease the problems. In such cases, you begin to regret and wonder why you didn’t keep some money aside as emergency funds.

After looking at why people need emergency funds, we will also give you steps by which you can save emergency funds.

Why you need emergency funds

Now, let us look at reasons why anyone would need emergency funds.

Serves as a financial security blanket: Do you know that thing called peace of mind? We often make jokes about the concept of having peace of mind. However, we must realize that many people do not have peace of mind.

One of the reasons why they may not have peace of mind is because of their monetary situation. These people have sleepless and restless nights thinking about things and problems they could solve with money. They could avoid such a situation if they had emergency funds.

Everyone needs an emergency fund because it serves as a financial security blanket. It is that assurance that constantly stays at the back of your mind, reminding you that you and your family are covered if there is ever a financial emergency.

The thing with emergencies is that you can never tell when they will occur. It is why we advise people to always prepare their emergency funds. But unfortunately, some people tend to procrastinate and begin to regret such a decision later.

If you’ve been in the habit of living without emergency funds, we will assume that you do not like having peace of mind. But to enjoy financial peace of mind, you need to build your emergency funds.

Reduces stress: Let’s say you’re in the office one day trying to get some work done and wishing that payday would come faster as you’ve used up all your money for the month. Suddenly, your phone rings, and you’re initially reluctant to pick up. After all, why should anyone be calling you during work hours?

When you look at the phone, you see that the call is from your sibling, which is surprising. Your sibling doesn’t typically call when you’re in the office. So, you decide to pick up the call and find out what could warrant such a call.

Unfortunately, your sibling isn’t calling with good news as you’re informed that a family emergency needs considerable money to settle. Some minutes ago, you were thinking of payday, and now this has come up. The problems are compounding.

Now, you’re running around looking for how to get the money, as it is your responsibility to provide. Can you see how the stress plays out? You’re panicking, and work is done for the day cause there is no way you can concentrate until you are sure the problem is settled.

But emergency funds allow you to have money for such an emergency easily.

It helps to clear debts: If you have emergency funds, you’d see that it is easier to clear your debts. Yes, we know you may be doubtful about this angle, but we will explain what we mean.

Typically, no one likes to be indebted. Therefore, people are always reluctant when the suggestion of taking loans comes up. As a result, people would shy away from taking loans, and it will only be their last resort.

When you borrow money from someone, there is the mindset that you’d pay the person back when you get your monthly salary. But, unfortunately, when you get your compensation and pay the person back, you may be left with nothing to survive until you get your next paycheck. So then, you are tempted to borrow again, which seems to become an unending cycle.

However, if you have been building your emergency funds, you can use them to repay your loans and rebuild them. After all, you had to borrow the money for an important reason. So, you can dip into your emergency funds to repay instead of being looped into the unending borrowing cycle.

However, it is essential to remember to rebuild the emergency funds rather than forgetting about them.

For medical reasons: Do you have any health issues? Sometimes, you may not be the one with health issues, as it could be a loved one or someone around you. If you did not know, medical issues take up most of the bills. It is why people are always grateful for good health.

But, there is also the understanding that medical issues can spring up at any time as it isn’t planned. After all, does anyone wake up and decide to be ill? When medical conditions arise, you will spend a lot of money. If you do not have emergency funds, you’d barely be able to survive after spending on medical treatment.

However, you can clear bills and settle things quickly when money is stored as emergency funds. You need not dip into your survival money before paying those medical bills.

If you have elderly parents, we do not need to tell you the importance of having money for medical reasons, as you already know that older people require more medical attention. Thus, reading this should prompt you to build up your emergency funds.

You’re a freelancer: If you’re self-employed or a freelancer or contractor, you shouldn’t need anyone to tell you that you need emergency funds. Yes, you’re getting gigs from people, and it seems nothing could go wrong. However, what happens at the end of these gigs? One thing every freelancer should have at the back of their minds is that their roles are not permanent and anything could happen. Therefore, you always have to be prepared.

One best way to stay prepared is to build your emergency funds when you still have these gigs. Then, if the duration of the gig expires and you have not gotten a new gig, you will have your emergency funds for survival.

People often say there is no job security when you’re a freelancer, as anything could happen. It is why they would prefer working in the corporate sector.

We are not here to compare being an entrepreneur and working in the corporate sector. However, our general advice is that people should have emergency funds and always be prepared.

Seeing you struggle to survive after months and years of hard work would be sad. Unfortunately, that would happen if you do not have emergency funds.

How to build your emergency funds

Many people ask how they can build their emergency funds. They say that it isn’t that they are not interested in having emergency funds, but they do not know how to build it.

Below are some helpful steps:

Separate your savings and spending account: It is impossible to think you can save for emergency funds with your spending account. How? You will dip into that money, shattering the idea of having any emergency funds.

If you’re trying to build your emergency funds, you should have a savings account dedicated to this cause. We recommend that you download and create an account with Mintyn Bank. By saving with them, you get some discounts and interest.

Once you have this savings account, you have it in mind that it isn’t for regular spending. Then, you must exercise self-control to ensure you do not touch the money.

Be intentional about budgeting: It is one thing to say that you want to save or have a budget for emergency funds. Then, it is another thing to follow through with the actions that will make it possible. After all, people say that talk is cheap, and we agree with their point of view.

If you’re not intentional about budgeting for emergency funds, you will keep spending the money and making excuses. However, it would help if you channel your mindset to stick to the savings and budgeting plan. It is the only way you can successfully build your emergency funds.

Keep your goal in mind: Sometimes, people forget the reasons why they need emergency funds. It is why we have this article to always serve as a reminder. While you’re building your emergency funds, you should have a goal. It is essential to keep that goal in mind as that is what would keep boosting your energy anytime you feel like giving up.

Yes, we agree that building your emergency funds isn’t easy and can be draining. As a result, you would sometimes feel like giving up. But remembering the goal and reason for it comes in handy. It will also help if you have an accountability partner, as this person always reminds you of the purpose and keeps you in check.

Be reasonable and realistic: When you’re trying to build your emergency funds, you need to be practical and realistic. For example, someone may want to put aside 80% of their salary into their emergency funds account. However, how realistic would it be to survive on the remaining 20% for the rest of the month? Of course, you’d find it hard and struggle.

Therefore, you need to be realistic. It is best to remember that you’re not in competition with anyone. Thus, it isn’t out of place if you keep 30% of your monthly salary aside as emergency funds.

If you haven’t started building your emergency funds, it isn’t too late to start!

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International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

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International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Islamic Trade and Finance Corporation (ITFC):

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market.

FINTECH

Kazang Pay launches card acquiring service in Zambia

Published

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Kazang Pay launches card acquiring service in Zambia

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

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Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

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Bitcoin

Binance expands crypto access in West and Central Africa with mobile money integration

Published

1 day ago

Christopher

Binance expands crypto access in West and Central Africa with mobile money integration

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This new service currently supports only BUY transactions, further simplifying the entry point for new crypto users in these regions, while providing them with a reliable and secure platform to acquire digital assets.

How to buy crypto:

Log in to your Binance app and select [Add Funds] from the homepage.
Choose your local fiat currency you wish to use by selecting the currency in the top-right column.
Follow the instructions to complete your crypto purchase.
Distributed by APO Group on behalf of Binance.

About Binance:
Binance is the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users and features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralisation and infrastructure solutions, and more. For more information, visit: https://www.Binance.com

Risk Warning: Digital asset prices are subject to high market risk and price volatility. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser before investing. This material should not be construed as financial advice. For more information, see our Terms of Use and Risk Warning.