Protect yourself from Income Disruption

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.

1. Step 1 - Calculate your monthly cashflow: Monthly cashflow is the amount you get after subtracting your expenses/outgoings from your average monthly income.
   
2. 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.