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.
Comments are closed.
The information provided here is for general information purposes only and is based on the opinion of the owners and writers only, subject to change without notice. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact your advisor for individual financial advice based on your personal circumstances.