Establishing an emergency buffer

Written and accurate as at: 15 April 2019

From a wealth accumulation perspective, before embarking on longer term strategies, plans need to be in place to meet not only your short-term cashflow requirements, but also financial emergencies.

With this in mind, a key question to consider is whether you have enough savings at hand to weather a financial emergency. A financial emergency can be:

In this animation, we illustrate the importance of establishing an emergency buffer – a ‘rainy day fund’ to weather financial emergencies.