Five types of savings you should have in 2023.

It’s important that we schedule time at the beginning of every year to review our financial health. Recap our expenses, make necessary adjustments, calculate our net worth statement, set/reset financial goals and build a budget. As we prepare towards that, here are five types of savings goals that you should consider.

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  1. Emergency Funds: Perhaps the most important fund that you need to save for in 2023. An emergency fund is money set aside for cases of emergency such as a sudden loss of a job, illness or car or home repairs.

The rule of thumb is to save at least 6–8 months of your living expenses. If you didn’t have a steady income coming in, how much would you need to survive daily and monthly?

Put this into consideration when planning your emergency fund budget. Also, note that this fund must be kept in a liquid or easily accessible account in case you need it.

2. FU Funds: An FU fund is a saving that allows you to walk away from any toxic situation that doesn’t serve you without considering the financial cost.

If a work environment or relationship becomes so toxic, your FU money gives you the opportunity to keep your sanity and walk away because you can financially meet your needs over a time period. You’re not bothered about the financial consequences because you have it under control.

Apart from leaving toxic situations, your FU fund allows you to explore alternatives such as a new career, going back to school, travelling, spending time with family,

Saving for your FU fund is not any different from other types of saving. The difference is the intention behind saving- in this case your why

3. Sinking Funds: A sinking fund is money you set aside for short-term projects or specific upcoming expenses like a friend’s wedding, birthday, social events or a new school bag for your child. Unlike emergency funds, a sinking fund has a clear purpose attached to it. Think of it as money you need for things that aren’t regular bills. Read more on Sinking Funds here.

4. Opportunity Funds: An opportunity fund allows you to save for opportunities that enrich your life such as starting a business, Japa funds, a dream vacation, a down payment on a home or some other opportunity that will improve your life. An opportunity fund prepares you to seize the lucky moments that come your way. You don’t want to be stranded or stuck when an opportunity arises. So create an Opportunity Fund today.

5. Retirement savings: Though retirement may seem far off, saving for it as early as possible will ensure you have enough money to navigate your retirement years. It also enables you to plan towards the future you deserve and desire. Additionally, saving for the long-term allows you to accumulate compounded interest. In other words, today’s interest will generate greater interest tomorrow.

Whatever your goals are, plan towards them with HerVest. With up to 10% interest rate PA, your dreams are on the pathway to success. Join the HerVest community today.

For more personal finance tips, follow @hervestng on Instagram, Facebook, LinkedIn and YouTube.

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An inclusive Fintech for underserved and excluded women in Africa. We're bridging the Gender economic gap from the farmlands to the boardrooms.

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An inclusive Fintech for underserved and excluded women in Africa. We're bridging the Gender economic gap from the farmlands to the boardrooms.