Emergency fund (rule 2)

Six months to a year emergency fund is a guideline and it is important for every employee such like me.

Definition emergency fund for Azizi is

“The whole concept of the emergency fund is to have money to cater for financial emergencies, which all of us face.”

This is my experience when I quit as a planter and join as land surveyor in year 2005. It is a tough period where my income reduce to 1/3 of my previous income. Moreover, the following year, I get my Danish. Can you imaging the situation? Money….money…..money is always in my mind and force me to dig all my emergency fund until empty.

If I do not have emergency fund which I have prepared before I resigned. I believe I will back to plantation again.
This is what I told my boss yesterday. “Self-prepared”.

How did you clear your credit card debt?

Credit card debt will be a nightmare if you are not trying to clear it. 18% interest per annual is no a joke and perhaps you can declare as bankruptcy. The initial step I will take is control my expenses while shopping and the best let your wife know the situation. If you still can not control then it is better to use cash to purchase and your credit card debt would not increase. Another solution is avoid high interest charges from credit card is borrow money from your parents or siblings to clear the debt. Do not feel shy to ask and perhaps when refund the money, give some additional money as thankful or “interest”. But if you have saving in hand then it is better to dig the saving rather than borrow from others. My previous experience reminded me that plan your credit card usage before you fall in this financial trap.