It’s an old saying, any experience which leads to bitter experience, lingers on for a life-time, hence one takes cautious steps towards the similar encounter.
Best explained by Mr. Abhay from Kolhapur, who witnessed the severe flooding recently, leading to many days & weeks for the entire city of Kolhapur without food, clean water, sanitation & above all, emergency money with residents. How did Mr. Abhay survive?
Mr. Abhay, with his early experience, in his childhood, had thought-thru & planned for such natural calamities. He always maintained at home, emergency cash, some extra stock of food & water, basic medical help. Sounds simple & basic. But do we have such contingency planned & executed?
I am not trying to prepare you for natural calamities, but for a far bigger calamity, i.e. savings & contingency. Why is that we wait for some reason (bad or good) to start the same? Buts that’s the usual story for all of us, mainly the millennial.
Contingency means, planning for an emergency, which could be in any format, key being Job loss or Job shift, Health or Medical. They (emergency) don’t come invited but happens. Usually, it is recommended to have 6 months to 12 months of income saved, towards contingency or emergency funds.