Part 7/8:

Self-employed workers with fluctuating incomes, such as earning between SGD 2,000 and SGD 5,000, face unique challenges. For them, building a robust emergency fund is critical, especially during periods of low income or income volatility. They should prioritize establishing a fund that covers the most essential expenditures before indulging in non-urgent expenses.

Continuous Evaluation and Adjustment

Building an emergency fund is only the first step; maintaining and adjusting it over time is equally important. Many start their savings journey using their first paycheck as a benchmark but often forget to revisit this figure as their financial circumstances evolve.