"I'm 19, working full-time and renting. I also have two pets. I'm worried I don't have enough put aside for emergencies. What's a good figure to aim for?"
- Question from Hayden in Kirwan, QLD
Top answer provided by:
Christine Lusher
Hi Hayden,
It is great that your backup plan is not to move back in with your parents! When devising your backup plan, consider the short-term and the long-term. A car that needs repairs is an emergency, but becoming ill or injured and unable to work is a bigger one.
Having the biggest emergency covered will ensure the small ones are well taken care of. Most advisers recommend having 3 months' worth of income easily accessible. Rent, food, bills, potential vet bills and all of your regular expenses should be covered by this amount. Now that will get you out of short-term trouble. What if you are unable to work for longer?
Many assume that the insurance they hold via their superannuation will cover them. But it is unlikely that this cover will be sufficient. Nobody wants to pay for insurance. We hope that it will be "dead money" and that you will never be in a position to claim. But, if you suffer from an illness or accident and are unable to work, your insurance policy will be detrimental! 
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.
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