ICR064: Rethinking the emergency fund
In this episode of the Informed Choice Podcast, Martin talks about rethinking the emergency fund.
There is also a roundup of the latest personal finance news and an update from the world of Informed Choice.
All Financial Planners talk about the importance of a cash emergency fund. This is a pot of cash put aside to cover any financial surprises in your life.
But why is an emergency fund so important? How much do you need to save? Where should you keep it?
In this episode of the Informed Choice Podcast, Martin answers all of these questions and starts to rethink some of the conventional wisdom about emergency funds.
He describes some scenarios where that old rule of thumb to keep the equivalent of three months committed expenditure in cash is far too little.
Personal finance news update
-The price of oil has rallied above $35 a barrel, as support from a weaker US dollar offset investor concerns about oversupply in the oil market.
-Average house prices in the UK grew by 9.7 per cent in the year to January, according to the Halifax.
-British pensioners overseas could see their state pension income uprated in the future.
-According to a new report, the largest proportion of happy people in England live in Mid Sussex.
-The charity Age Concern faces an investigation by the Charity Commission, following allegations they promoted unfavourable gas and electricity deals in return for cash.
-Lloyds Banking Group is cutting 1,755 jobs and closing 29 branches in an attempt to save money.
Useful links mentioned in this episode
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