Many of my clients are aware of my preaching… always have an emergency reserve!
There are many reasons for this with most of them revolving around your home and hidden costs that always tend to pop up. Many people forget to consider the fact that an emergency can also come from the loss of your greatest asset, your ability to earn an income. If you were to not able to go to work due to sickness or injury, could you keep food on the table and a roof over your head? What if you were laid off?
These are great reasons to build an emergency reserve (aka rainy day fund).
Throughout the years I’ve seen many uses for an emergency reserve. I’ve had a client living in a condo building get handed a bill for $11,000 to replace the pipes in the entire building! Could you afford that? Good thing he listened… he could afford it!
In my practice we typically use the TFSA (Tax Free Savings Account) for this type of saving. That way we can keep your investments conservative and not spend a large amount on taxes.
If you feel like your finances would be Strained (excuse the pun) if you had an emergency call Travis Strain at 604-308-6030.
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