Contingency Fund

A lot of times during the course of this blog i have spoken about the Contingency fund and even if you see my New Year Resolutions i have planned to start one, but frankly i haven't been able to get myself to start one yet but now i have laid out a plan for myself and i don't know if it could be useful to anyone of you but its certainly workable for me as far as i can see......

1. Small Starting : I am going to put aside small amounts as soon as possible. Anytime i have any change left over in my pocket even if it is just Rs. 10/-, I am going to put it in my piggy bank.

2. Auto Deduction : From hereon i am going to request my bank to deduct a small amount from my account as soon as the salary is transferred to my account on a monthly basis. Maybe open a recurring deposit account.

3. Fund to be treated as a bill : This Contingency fund that i plan to make will be treated as a bill to which come what may i have to make a payment just like any other bill eg. Credit Card, Electricity, telephone. This will make me spend only what is left over for other expenses.

4. Reduce an Expense : I plan to reduce my personal telephone bill, and put that amount into my savings, this way i will not have to put in an extra amount and i can make a saving.

5. Reduce outings : I plan to reduce my weekend trips out for lunch or dinner to only twice monthly instead of every weekend and save that amount.

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