Emergency Funds: Your Financial Airbag

In Nigeria, "Village People" is often just code for "Unexpected Life Event". A car engine knock, a sudden dental surgery, or a layoff can happen to anyone. Without an emergency fund, these events force you to borrow from loan sharks (at 30% interest) or beg friends. An emergency fund buys you dignity and peace of mind.

The standard rule is 3 to 6 months of living expenses.

If your monthly survival budget (Rent + Food + Transport + Data) is ₦150,000:

• Minimum Goal: ₦450,000 (3 Months)
• Ideal Goal: ₦900,000 (6 Months)

If you are a freelancer or have dependents, aim for 6 months. If you are single with a stable government job, 3 months might suffice.

Your emergency fund must be Accessible (Liquid) but Separate from your spending money.

Do NOT keep it in:

• Your main checking account (You will spend it).
• Real Estate or Land (You can't sell land in 24 hours to pay a hospital bill).
• Crypto or Stocks (The market might crash just when you need the cash).

DO keep it in:

• High-Yield Savings Account (HYSA): Apps like PiggyVest (Flex Naira), Cowrywise, or Kuda offer decent interest rates.
• Money Market Fund (MMF): Offered by Stanbic IBTC, ARM, etc. They are low risk and preserve capital.

Saving ₦500k sounds scary, but you can eat the elephant one bite at a time.

• Start Small: Save ₦1,000 daily. In a year, that's ₦365,000.
• Windfalls: Did you get a 13th-month salary or a bonus? Dump 50% of it here immediately.
• Sell Junk: Sell that old phone or generator you don't use on Jiji.

Use it for:

• Job loss.
• Medical emergency (not covered by HMO).
• Major car repair (engine/gearbox).
• Unexpected home repair (roof leaking).

Do NOT use it for:

• Aso Ebi for a friend's wedding.
• New iPhone.
• Vacation.
• "Detty December".

The best thing money can buy is financial peace. Knowing you can handle a ₦200,000 problem without calling anyone for help is a superpower. Start building your airbag today.