A financial reserve is a fund that you set aside for a specific purpose that can be used to cover unforeseen emergencies. It can also cover any high-value purchases you might want to make in the future.
When should you use a financial reserve?
1- Use your emergency reserve when you lose your job
Losing your job can be one of life’s most devastating blows, and it’s hard to know when or if you can find a new job.
It’s important to have an emergency fund that you can count on in case the unexpected happens, and it’s best if that fund is large enough that you can focus on your job search without worry.
2- The financial reserve is ideal to use in case of illness
Emergency reserve can be a great idea if you have a serious accident and are unable to work. This fund allows you to meet your financial commitments and anything else that comes along.
3- Use in case of major unforeseen events
When it comes to your car, you need to know that it will break down when you need to use it most. If you work from home or have a job that requires a lot of travel, it’s best to have a reservation in case something happens to the vehicle.
When your car breaks down, try to take advantage of the savings you have to keep driving.
4- Helping a fa-mily member
Emergency reserve can be used to help a family member in a difficult situation. But beware: this does not mean borrowing money for trifles.
To help create a healthy financial balance, we have a financial reserve. It usually covers expensive exams, serious illnesses, and other situations that may require support.
5- Use the financial reserve to carry out maintenance on the house.
The financial reserve is a fund that can be used to keep your home up to date with maintenance.
Backgrounds can be used for various tasks such as painting, replacing broken windows, leaking roofs and so on.
So, do you already have a financial reserve? Anyway, you already know how to use it.