Emergency funds are always good to have so the answer is yes! Students need an emergency fund too.
1. They tend to say that the older you get the better you manage money
As you are reading this post give yourself a tap on the back. You are one of few students making conscious efforts to manage your money well.
Getting into the habit of building an emergency fund will help you manage money smartly.
2. You are prepared for unexpected issues
Unexpected expenses can arise at any point. Cars break down, a family member may fall sick and need your support. Technical issues may arise that require you to purchase a new electrical item.
Planning ahead can reduce stress.
3. Building an emergency fund can help you build a new habit
Psychologically this well help increase your confidence to manage money. Thinking ahead will also get you to think about paying off your student loan debt faster. You may decide to purchase a house after graduation due to your savings.a Also, when you get your Graduate role you will be able to manage your salary.
4. Emergency fund will support you until you get your Graduate job
Until you find your Graduate job you can use the emergency fund to support you
How to Start an Emergency Fund
Set a clear goal and manage your emergency fund by saving up enough money to cover six months of expenses.
Calculate and state the number you wish to reach within three to six months. You can save as little as £10 – £50 a month. Just commit to putting down money each month!
Create a Separate Account for Your Emergency Fund
This will help you stay in control. Try and automate the payments so that you do not forget. This will also help to avoid you using the money elsewhere. The great thing about automated payments is that money starts to accumulate without you noticing.