Savings (Emergency Funds)

When we’re able to control our spending and limit its impact against the money we receive each week, fortnight or month, the residue of our efforts are known as savings.

The purpose of accumulating savings is that it can help provide a barrier against incidental events that need money to rectify. I remember once when we had come back home from a trip, our air conditioner had died. Thankfully, because we had an emergency fund and enough savings we were easily able to replace the air conditioner even in the peak period of summer.

So, how much should you accumulate?