MAXIMISE YOUR MONEY
5-DAY CHALLENGE

SORTED MONEY MONTH
1 – 31 AUGUST 2023

Maximise your money in your 30s: 7 – 11 August

Day 3: Dodge the curve balls – build an emergency fund

How prepared are you for unexpected expenses? Having an emergency fund and the appropriate insurance coverage in place will bring peace of mind knowing that you are prepared to handle unexpected challenges without derailing your financial stability.

Challenge yourself to dodge the curve balls that life may throw at you with these expert tips from our financial advisers:

Build an emergency fund

Do you have an emergency fund exclusively for unplanned and unforeseen expenses? Everyone needs one, particularly if you have a family because emergencies do happen. Whether you need to cover medical bills, car repairs, urgent house repairs or job loss, having some contingency ‘cash’ can help prevent financial hardship and stress without having to rely on credit cards or personal loans with high-interest rates. In the current cost of living crisis, this becomes even more important because of the increasing risk of price hikes and job losses.

Make building an emergency fund your priority if you don’t already have one. Aim to save three to six months’ worth of living expenses in a separate, easily accessible account. This will serve as a safety net and bring peace of mind.

Protection for your loved ones

Having the right insurance policies in place, such as life insurance and health insurance, safeguards the financial future of your family in the event of an unforeseen tragedy. Life insurance provides a lump sum payout to your beneficiaries, which can be crucial for replacing lost income, paying off debts, or funding your children’s education. While health insurance helps cover medical expenses, including hospitalization, surgeries, and ongoing treatments, which can otherwise lead to substantial out-of-pocket costs.

If you own a home, having proper homeowners’ insurance is also essential to protect your property against damages caused by natural disasters, accidents, or theft. This ensures that you can repair or replace your home and belongings if the unexpected occurs.

Conduct a thorough review of your insurance policies, especially if you have a growing family. Seek advice from a financial adviser to ensure you have adequate health, life, and disability insurance cover to protect you against unforeseen events that could otherwise have a significant financial impact.

Having an emergency fund and the right insurance cover for your needs provides peace of mind, allowing you to focus on your family’s well-being and pursue your goals without worrying about financial uncertainties.

Top tips contributed by:

Vanessa Belton | Financial Adviser
Ph 027 222 4449 vanessa@greenlight.co.nz

Julius Capilitan | Financial Adviser & Managing Director
Ph 027 2777 352  julius.capilitan@century21.co.nz

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