Consumers are being advised to set cash aside in case of unexpected redundancies.
Some sections of the economy are still under threat from potential job-losses. The retail industry continues to suffer from poor high street activity, while major Australian banks are also announcing redundancy plans as part of cost-cutting measures.
Therefore, it is worthwhile setting aside at least three months’ income to cope with unexpected circumstances.
This is best achieved like any other savings goal, say ipac Securities; by putting aside an affordable sum each week – ideally in a strong performing savings account – and working towards the larger target.
Another option available is to pay extra savings into a mortgage, which would allow future payments to be reduced in the event of financial hardship.
This kind of savings plan is also a useful fall-back if sickness or injury renders someone unable to work, or if there is an extended break before finding a new job.
The key disciplines to achieving this, ipac notes, are keeping weekly savings aside from everyday expenditure funds, and, in the event of redundancy, using any large payout sparingly until regular income is secured again.
If you are interesting in saving for the unexpected, why not check out Which4U's savings accounts and get started?
Mark Hornby
