The Advantages of Expanding Business
When you achieve a certain level of success as a company leader, you may start to think about the benefits of expanding into new markets. The expansion of business is something all good entrepreneurs aspire to, and early success often fuels dreams of growth. But the expansion of business isn’t something to take on without a careful understanding of the pitfalls of growing too fast. However, despite some of the drawbacks, there are specific advantages of business growth that can help you make the right decision for your company.
What is an Emergency Fund?
An emergency fund can be referred to as the pool of liquid money which is set aside for unforeseen expenses. They are the backbone of strong personal financial plans.
Ideally, your emergency funds should be 3-6 months of your expense and growing your emergency fund should be your utmost priority. These stash of money helps in covering the financial surprises which can be costly and stressful. It is an essential corpus that you must keep aside to tackle emergencies.
The whole point of having an emergency fund is to save you from debts and also prevent you from scrambling to wrangle up the money at the last minute.
Benefits of Emergency funds
Earn interest: A major benefit of an emergency fund is that you can earn more interest when the money is just left to do its thing. The more money you put aside for the emergency fund, the more interest you can earn. However, the interest you earn will depend on the type of account you are investing in.
Avoid costly debts: Emergencies may pop up anytime and in case you don't have emergency funds set aside, you may be drowned in debts. Medical emergencies, unexpected bills or unemployment may often cause you to resort to credit. Thus emergency funds, during such unexpected times can help you cover these expenses without taking a loan.
Peace of mind: The most important part about emergency funds is that it gives you peace of mind. A solid emergency fund can reassure you that you can manage unforeseen expenses and hence focus on your current work and also improve in other areas of life as well by minimising financial stress.
Keeps you from spending on a whim: If you keep your money aside as an emergency fund, you can definitely keep a check on your expenses. In other words, keeping the money out of your reach will ensure that you don't spend it on a whim, no matter how much you are tempted by it. Also, it will help you keep track of your savings.
Ensure security of your future: Apart from paying for unforeseen emergency expenses, one of the major benefits of these funds is that t it can help protect your retirement savings. Emergency funds will thereby prevent you from borrowing from your future self.
