Due to the Credit Crunch, it was reported that for the first time in more than 50 years British families are raiding their savings to balance thier monthly budgets.
For the past 40 years most families have been saving about 8% of their disposable income. but in the first three months of this year, household & fuel bills rocketed and the flow of cheap credits have been cut-off by banks.
This, in my opinion, is not all bad news; at least people are able to fall their savings as a cushion – as opposed to the usual trend of using credit cards or personal loans for daily living. That is what the emergency fund is there for – assuming you have it set aside.
Even right now, if you haven’t established your emergency fund account, do it becuase as long as you are alive, emergenecies WILL happen.
“The ants are not a strong people, But they prepare their food in the summer”
- The Bible (NASB)
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I enjoy reading your blog. This is my first time to comment – just wanted to thank you for your work.