Everything You Need To Know about Emergency Funds

A Thread 🧵👇

1/ Let’s understand the meaning of Emergency Fund, it is a fund that will help you at the time of financial crisis or unplanned scenarios. It is also known as contingency funds.

An Emergency Fund is the first step towards financial freedom.
2/ For example, when the Covid-19 hits many people lose their jobs which results in loss of financial support and people find difficulties buying basic necessities for themselves. So, having emergency funds helps you to sustain the period.
3/ Now the question arises, how to build an Emergency Fund?

An emergency fund cannot be built overnight but it can be done gradually. Firstly, you need to analyse your monthly expenses and then, you need to set aside a particular amount every month.
4/ Say, you have decided to have an emergency fund of ₹3 lakhs. In this case, you can set aside ₹45000 or ₹50000 every month to accumulate the corpus you need. It is fine to even cut down on your investments to build this amount.
5/ How much Emergency Fund is required?

Well, it depends upon your monthly income and expenses, ideally an emergency fund should be at least 6 months of your monthly expenses.
6/ For example, your monthly income is ₹1 lakh and your expenditure are ₹50000, then you should have ₹3-3.5 lakhs of emergency fund.
7/ Lastly, the question arises where to park the emergency fund?

It is the most important criteria of building an emergency fund because managing your money is a very crucial part.

Once you have built your emergency fund, it should be diversified into different channels.
8/ (a) Some portion of your money should be kept in cash because liquidity is very important.

(b) Some portion should be kept in your savings bank account.

(c) A part of your money should be invested in the liquid fund, where your goal is not to chase returns.
9/ If you’re wondering how much percentage of money should be invested in different options, well it depends upon the individual choice.
10/ Unpopular Fact - Don’t invest your emergency funds in the stock market or mutual funds.

BY : @ShubhamAggarwl
11/ That’s it, hope you liked the thread.

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The Dutch regulator and DNB as financial supervisor are a tough cookie to deal with. In essence they hyperregulate EU-rules into goldplated Dutch rules which go beyond what is prescribed in Europe.

All NL-customers at British banks may thus be kicked out on brexit.

Thread

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If we start with the capital requirements directive, it says attracting deposits is forbidden. In article 9.

https://t.co/RYl7SXligC


Now the translation of that rule into Dutch law is slightly expanded to not only prohibit attracting deposits, but to also prohibit, having those deposits under custody ('ter beschikking hebben').

That's not in EU law, but it is in our Dutch law.

https://t.co/PsbWfNY3PA


So if you wonder how this would work out for UK banks and Payment institutions servicing Dutch customers. Have a read at the technical explanation of DNB, the financial supervisor and their summarising table.

https://t.co/LL0fAnYkRJ

Passive servicing of Dutch is not allowed!


Any bank or PSP in the UK that continues to serve Dutch customers (as in retail customers, professional players are excepted) can thus be subject to fines and policing under Dutch law.

Meaning we not only have Accidental American issues in payments, but also Accidental Dutchies

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