13 Sep 2024
Financial emergencies can strike at any time, leaving expats in the UK scrambling to cover unexpected costs. Are you prepared to weather such a storm without financial stress? Managing such a financial crisis can become very challenging for expats in the UK. However, incidents like these occur daily, and you need instant funds to make your life easier. The only solution is to have money set up for such unforeseen incidents. Keep reading this blog to learn how to effectively set up an emergency fund to remit to Pakistan so your life won't be affected much in emergencies.
Emergency funds are crucial because they prevent people from depleting their retirement savings or accruing credit card debt, which may have disastrous effects on their finances.
Maintaining a monthly budget makes setting up an emergency fund easier. A simple method of creating a budget is to separate your take-home money into three categories: necessities, wants, and savings.
Start by totaling your existing monthly costs before examining how much you spend on needs and wants. This covers your regular expenses for accommodation, food, clothes, insurance, entertainment, etc. You may be more deliberate about increasing your savings if you are more aware of your monthly spending. During the process, you may identify areas where you can reduce your expenditure to free up more money for emergency funds.
Approximately 95% of participants in a 2023 study said they received their paychecks using direct deposit. You no longer need to physically deposit checks when you use direct deposit, automatically transferring your paycheck and other funds into your bank or savings account.
However, you don't have to deposit all your money into one account. By setting up a split direct deposit, you can choose a portion of your income to go into your emergency fund and the remaining amount to your bank account or vice versa.
Moreover, there are applications for savings that may automatically move a portion of your income into a savings account. You can also automate your online money transfer to Pakistan to ease further and streamline your financial requirements. Automating the process cannot only make saving more accessible but also help you stay on course to meet your savings objectives.
If you prefer to pay with cash for things, you can quickly start your emergency fund by saving up your change. You can keep a money jar storing all your change notes for a year. After a year, you will be surprised to see how much you have saved through this simple method.
Cutting costs is one of the simplest methods to save money, and here are some foolproof ways to do that;
Consider purchasing a used automobile if you're looking for a new one. A new automobile loses 10% of its value when driven off the lot for the first time. Investing in an earlier model of the one you're interested in might even help you save more.
It adds up to the $5 coffee daily or the $10 lunch break. Making coffee at home and packing lunch for work will help you save money and put more into your emergency fund. Similarly, raising your monthly savings will be much simpler if you decide to buy groceries and prepare meals at home rather than dining out.
We've discussed strategies for reducing spending to save money for a rainy-day fund. Increasing your income while maintaining the same or lower level of spending will allow you to save more money since you will have more funds on hand. Seek a strategy to increase your income, such as running a side business, asking for a raise, or working more hours.
ACE Money Transfer is aware of the challenges that might arise in expat life, especially the expensive ways to send money to Pakistan from UK. Many encounter difficulties such as high fees, sluggish transfer speeds, and poor exchange rates. ACE Money Transfer addresses these issues head-on so you can easily save for your emergency fund.
ACE Money Transfer sets itself apart with an affordable and clear price schedule. You can be confident that there won't be any surprises and that ACE will pay for any up-front expenses. This level of openness guarantees that you are receiving the most value for your money compared to alternative options, making it a more cost-effective choice.
The exchange rate can simply change the game of your remittance transfer. An unfavorable exchange rate might drastically reduce the total amount your receiver gets. With reasonable conversion rates, ACE Money Transfer ensures that your family receives a significant amount of your earnings.
Unlike conventional money transfer services, ACE Money Transfer does not impose any unstated costs. There are no unpleasant surprises or additional expenses, and the fees you see upfront is what you will pay. This implies that you may rely on receiving an honest and open transaction if you choose ACE.
Sending money to Pakistan doesn't have to be stressful or expensive, thanks to ACE Money Transfer, which provides a solution that includes cheaper fees, quicker transfers, and competitive exchange rates. The money you will save through affordable fees and exchange rates can be utilized in your emergency fund. Try ACE Money Transfer for your next money transfer to Pakistan and experience a more effective and affordable way of sending money.
Financial experts recommend keeping 3 to 6 months' living expenses in your emergency fund.
No, emergency funds should remain liquid and accessible. Avoid investing them in stocks or long-term assets that may fluctuate or take time to withdraw.
Yes, having a separate savings account dedicated to your emergency fund can help you track your progress without mixing it with other financial goals.
Review your emergency fund every six months or after significant life changes such as a job switch, increased expenses, or moving to a different location.
Start small by consistently setting aside a small percentage of your income. Even saving £20-£50 monthly adds up over time and helps develop the habit.
