Emergency Fund


Lately, i’ve been saving a huge sum for the purpose of emergency. I define an emergency fund as funds for sudden and unexpected expenses. This includes a sudden change of job role which may deny me some benefits I had earlier taken for granted, medical expenses which my current medical scheme may not cover and other miscellanous expenses that suddenly creep up out of nowhere.

I have this tidy sum in my savings account right now and I really had no idea about where to invest it for the short term until I thought about treasury bills. I have been toying with this idea for some time now due to the low interest rate available for savings account holders within the Nigerian banking industry. Besides, I have also been toying with the idea of taking a one year break from my career while I pursue other personal interests. So, I called up my friend at First Bank who was kind enough to tell me that the rate is 5.9%. This may not seem attractive to a lot of people, but on the other hand, remember i’m not looking for huge returns. I need an outlet where I can stash this fund till I really need it. Treasury bills offer a safe return and I can decide to use the income I receive from this investment towards my living expenses or in the interim roll it over till I’m really sure on what I intend to spend it on.

Furthermore, in the event of an emergency, I can pull out my funds but until then, Treasury Bills will be a safe outlet for my funds.

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