Part 4/8:

Assessing your consumption patterns and understanding your unique financial situation is essential to accurately determine the size of your emergency fund.

Where to Keep Your Emergency Funds

The safety and liquidity of your emergency savings are paramount. It’s advisable not to stash these funds in investments that are volatile or tied up in assets like stocks or property, which may not be accessible when needed most.

Ideal options include:

• High-yield savings accounts: Many digital banks in Singapore offer better interest rates than traditional banks, making them a suitable place for emergency funds.

• Money market solutions: Investment platforms providing money market funds can offer yields of over 3%, combining liquidity with better returns.