An emergency fund is extremely important if financial resources are spontaneously needed due to unexpected damage or expenses. But how big should this financial reserve be? This question is answered by consumer protection.

An emergency fund is a financial reserve that is explicitly set aside for emergencies such as sudden repairs, unemployment, etc. The problem: Building up reserves on a regular basis is not easy for many people. If you can still afford it, you should prepare yourself for financial emergencies through monthly savings or other methods. Experts explain how high the emergency fund should be.

The consumer advice center has very specific advice: It speaks of a “buffer of two to three months’ salary […] in order to be able to cover such unexpected expenses at any time”. It is also recommended to invest appropriate savings in a current account. You don’t expect lavish interest rates here. But you can access it at any time.

By the way, the amount can vary depending on the type of household. Families tend to need more emergency funds than single people.

After figuring out the approximate amount of an emergency fund, the question arises as to how best to reach your goal. Depending on your financial situation, there are various options. Because it doesn’t always have to be a large, fixed amount that is deducted from your salary. Just five percent of your net income per month is a good start, explains the consumer advice center.

Further measures can include:

There are a few tricks for additional savings options. It should help to carry a 100 euro note with you. At least one psychologist recommends this because it supposedly puts your expenses in a new perspective and makes you more aware of how much you are really paying.

Source: consumer advice center

By Dana Neumann

As a child, Umeswaran Arunagirinathan fled the then civil war-torn country of Sri Lanka. All alone. He came to Germany, grew up in a socially disadvantaged area, graduated and studied. Today he is a heart surgeon. What does a “climber” like “Dr. Umes” (46) about the current mood in the country?

Germany is making savings wherever it can, and politicians are still debating where they can save even more. Neighbor France would basically have to do the same. However, a “culture of deficit” has prevailed there for too long – which has an impact on the entire EU.

The original for this article “Three tips show how to properly save an emergency fund” comes from