Responsible households and individuals have a financial buffer in place for a rainy day. In the event of a shortfall in a regular source of income, they can use the ready financial reserve to cover current expenses. For example, they can use their savings to pay for rent, utilities, telephone bills, monthly mortgage or consumer loan payments, groceries and medicines for a certain period of time.
Minimum amount of financial reserve
Dostatečná finanční rezerva vám zajistí potřebný klid v nepříznivé životní situaci. Optimální výše finanční rezervy bude u každého z nás jiná. Pokud bydlíte ve vlastní nemovitosti, nesplácíte žádné úvěry a děti už na vás
A sufficient financial reserve will give you the peace of mind you need in an adverse life situation. The optimal amount of financial reserves will be different for each of us. If you live in your own property, have no loans to repay and your children are no longer financially dependent on you, you can get by with a much lower amount than a family with children paying off a mortgage on a flat and a car loan. The financial reserve should be enough to cover your expenses for at least six months. In the case of a family with monthly expenses of CZK 30 000, this is CZK 180 000.
How to create a financial reserve?
Build your financial reserve continuously. Set aside at least 20 percent of your income each month. It’s worth putting money in a separate savings account with no notice period. This is because you can withdraw the money quickly if you need it without penalty or fees. Choose a savings account that offers at least a minimum interest rate on your deposit.