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Graham Westmacott CFA

Portfolio Manager

Susan Daley CFA

Associate Portfolio Manager
Contact
  • T519.880.0888
  • 1.877.517.0888
  • F519.880.9997
  • The Marsland Centre
  • 20 Erb St. W,
    Suite 506
  • Waterloo, Ontario N2L 1T2

How to Build an Emergency Fund

August 8, 2018 - 0 comments

Having money set aside for an emergency, whether its job loss or a vet bill is important. I outlined how various circumstances affect the amount you should hold in your emergency fund in a previous post. Once you determine how much you need readily available, you can think about where to actually hold that cash. The default option is to hold your emergency fund in you regular chequing account, but isn’t helpful if you’re the type of person who will spend the money in their account until it reaches $0. Holding your emergency funds in a separate savings account – either at your own bank or a separate bank – can allow you to earn (some) interest and reduce temptation to dip into your savings for discretionary spending.

Using GIC’s can also allow you to earn more interest than a chequing or savings account, and since they are less liquid, again reduces your ability to dip into the funds for unnecessary expenses. I outline two GIC options in the video below. The final option is having access to funds through a line of credit, though beware of adding debt to a potentially already stressful situation. For more details around how you might want to build an emergency fund, and what I personally do, watch the video.

By: Susan Daley with 0 comments.
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