Budget and emergency fund

Before investing, organize the basics. Without them, any unexpected event forces you to touch what should stay put.

Budget in 3 parts

A simple rule to start:

• Needs (housing, food, bills): about 50% of income.
• Wants (leisure, shopping): about 30%.
• Future (emergency fund and investments): about 20%.

Adjust the numbers to your reality. What matters is that the future gets a fixed slice.

Emergency fund

It's money for unexpected events: losing income, a health issue, a repair. A common reference is to save 3 to 6 months of your expenses, in a safe and easy-to-access place.

Right order

1. Pay off expensive debts (credit card, overdraft).
2. Build the emergency fund.
3. Only then invest what can stay applied for a longer time.