Protect yourself from Income Disruption
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Protect yourself from income disruption
Income is mostly disrupted when a person loses their job, or their business faces temporary challenges that affect business revenue or profitability.
3 ways to protect yourself against income disruption
1. Create an Emergency Fund
Creating and emergency fund is the easiest way to plan for income disruption.
- Step 1 - Calculate your monthly cashflow: Monthly cashflow is the amount you get after subtracting your expenses/outgoings from your average monthly income.
- Step 2 - Set aside part of your monthly cashflow: Set aside 50% of your monthly cashflow in a savings account (every month) till it reaches an equivalent of 6-9 months of your average monthly income
2. Open a bank deposit / term deposit
Open a one-year bank deposit with your savings so you can slightly better returns than pure cash.
3. Invest your money in a money-market fund
Money market funds are another way of getting better returns than cash. Open an investment account on our investment platform and build your emergency fund in international money-market funds.
Don't know where to start?
Book a 15-minute phone call and we will be happy to help you.
the other two factors that can stop your income
The following things can disrupt your income, click on the topics to know more.