Emergencies don’t knock the door!!!!

Emergency Fund

Emergency Funds- The moment we hear this, it reminds us of our Savings A/c; isn’t it??? Most of us often confuse our Savings A/c with an emergency fund and hence believe that our savings a/c is our emergency fund.

If I go by the literal meaning of Emergency Fund – “It is that cash that one saves for the sole purpose of helping him/her maintain a normal life in times of unforeseen emergencies”. Now tell me – “Is it justified to call Savings A/c an emergency fund?” We use savings account for both our needs and wants whether it be our daily living expenses or shopping or entertainment expenses. And as the month end approaches, in most cases the balance in savings a/c tends to get to its lowest levels. Continue reading

The War of NEEDS v/s WANTS

Needs v/s Wants

The festive mood is on with Diwali round the corner. I remember, as a kid I used to wait for Diwali like anything. The reasons for this wait were just not because it’s the time to have holidays or to burst crackers or to have sumptuous food. But the biggest reason was, it used to be a time to buy new things viz. clothes, utensils, furniture etc. Many of us must have heard our parents saying “We will buy a new car or a new fridge on Diwali”. Those were the times when most of us did not have much money to spend and hence people used to wait for Diwali to buy things they needed. Continue reading