Well, hello there. You’re looking financially literate today.
Today I want to take you through the process of setting up your Emergency Fund, step by step. I think my experience was pretty typical of the overall experience, so maybe it’ll be a little easier for you to go through the process if you know exactly what’s coming.
I’ve created, from the very firmament, two easy-to-follow guides to setting up a Money Market Fund. According to very smart people, a money market fund is perfect place to keep your emergency cash. It’s safe, and it offers enough growth to beat inflation, which means you will not LOSE money over time, due to the increasing prices of absolutely everything. In fact, scientists report that the only things not affected by inflation are those telescopes you put coins into at tourist spots. Those are still mostly two rand. I think they need to be audited.
Getting back to the point, guide 1 is for computer-literate people, while guide 2 is for my mom, who is mildly computer-literate, but sometimes prefers step-by-step instructions.
Unfortunately, to seal the deal and open your account, you have to scan or copy some identification stuff, including:
So, if you’re me, the next step is to do everything EXCEPT all that stuff for about two weeks. Then, with a looming deadline, you write half the blog post, and send it to the editors, begging for one day more.
Okay, so you’ve finally sent in all your stuff, and Allan Gray very efficiently keeps in touch over email throughout the process.
Once everything is shipshape, they sent you a One Time Pin, which you use to log into their “internet banking” interface. You log in, you get the satisfaction of seeing a hopefully large amount of money in your Money Market Fund, and then you log out and ignore it forever. At least, that’s what I plan to do until I need it. It certainly doesn’t need me to sit there and slowly accumulate cash.
Congratulations! Setting up an emergency fund is an extremely adult thing to do, and an important part of your financial wellness puzzle. That wasn’t so hard, was it?
Next up: My experience with financial advisors.