Today, I received an email from a reader of my blog. His questions were very good, and so I'd thought I share it, but however keeping his identity secret of course!
Let's refer to him as Reader A. Now, he shared with me that his monthly allowance was $400 which I believe is the average allowance of most Singaporean teens (correct me if I'm wrong)
He is also clear on his needs/wants/savings and allocates $200 for his needs, $120 for his wants and $80 for his emergency fund.
However, he had a question on emergency funds. Therefore, to clarify, emergency funds should never be used for investing. However, there are a few extreme cases that you can do so. Maybe the share price fell, or you see a good stock but do not yet have enough cash. Therefore you use your emergency fund with the mindset that you'll pay it ...
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