It can help when something goes wrong with your income, health, home, car, business or other important areas of life.

The problem is that many people only start thinking about emergency savings after an emergency has already happened.

You do not have to build a large emergency fund immediately.

Start with an amount you can manage.

If you earn ₦200,000 monthly, for example, saving ₦10,000 consistently may seem small, but it creates a habit.

As your income improves, you can increase the amount.

The money should also be kept somewhere that is reasonably accessible when a genuine emergency occurs, rather than putting all of it into something that is difficult to access quickly.

An emergency fund should not be treated as money for a new phone, weekend outing or impulsive purchase.

Its purpose is to protect you when something unexpected happens.

Lesson: Emergency savings may look unnecessary when everything is fine, but they become valuable when something goes wrong.