Sending money home without going broke
A listener in Singapore sends half her salary to family in Penang and has nothing left. Farah talks through setting a sustainable amount, having the conversation, and protecting your own future.
The emergency fund, sized honestly
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Show notes
The emergency fund, sized honestly
Everyone says six months of expenses. Farah explains why that number is a rule of thumb for a very particular kind of life, and shows how to build a target that fits yours, including the people who rely on you.
- The difference between an emergency fund and a rainy day fund
- Counting dependants, insurance gaps and a car that is nine years old
- Starting with one month, and why that first month matters most
- Where to keep it so you cannot spend it by accident
- A listener in Johor Bahru shares her 14 month plan
Next week: car loans versus credit cards, and which to kill first.
Transcript
Hello, I am Farah Zulkifli and you are listening to Rent, Rice and Rainy Days, the show about money for people who get paid once a month. Today we are talking about the emergency fund, and I want to start by throwing out the number everybody quotes. Six months of expenses. For some people that is far too much and they give up before they begin. For others, with parents to support and an old car and no insurance, it is not nearly enough. So we are going to size it honestly, for your life, not for a textbook. I will walk through how I do it with clients, where to park the money so it is safe but not tempting, and later a listener from Johor Bahru shares the fourteen month plan she actually stuck to. Get a pen. You are listening on Witspeak Podcasts.
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