Emergency Fund or Rainy day Fund for Expats
Emergency Fund

Emergency Fund or Rainy day Fund for Expats

A Rainy day always does not come during the Monsoon season. It may also come without any notices. Like that,  we don’t always think about emergency case scenarios but it is better to be prepared for such cases.

This article is for the people who are working away from their home country i.e) Expats. Mainly about the necessity of why an emergency fund is required for them. I will elaborate on the situations and why the fund is always required.

When our life is pretty normal, often we say this “Always have some money aside for the emergency case” but we get greedy and are not following this once we see the Exchange rate increased beyond certain limits.

I would like to share the incidents which I have seen either happened to me or happened to my friends, how we tackled those situations in real-time. Some of the incidents which you may not have foreseen. I put my thoughts on that and explained those situations.

An Emergency can happen at any time and anywhere. No one can predict that in this universe, but we shall be prepared for those situations.

The below situations are written based on Indians who are staying in the French Capital, Paris. But it can be easily related to other country people also.

Have you ever experienced an emergency situation where you need a lump sum but you don’t have it in the Current French account instead you have it in a Home(India) country savings account?

If yes, then this article might lighten up the burden on you.

We do have the reimbursements for the travel or insurance but it takes some time and it does not help where the immediate action or attention requires.

Let me say a few unforeseen situations below and how shall we tackle it with the emergency fund, your views are also welcome.

 

Sudden hospitalization due to sickness or fell or accident

emergency fund hospitalization

  • We do have Health insurance but the Clinics and other Hospital doesn’t have the cashless system. So we do require a lump sum in that situation.
  • The expenses for such treatments varies from 1500€ to 2000€ (One Scan takes around 500-600 euros and Consultation will be 200€ and in case of emergency it costs even more)
  • Dental Emergencies also cost more.

 

Death of a family member in Home Country / India

  • This might happen and travel to Home country or India (one-way ticket) within short notice, the prices will be in the range of 1000€~2000€ per person.

 

Pickpocket or Loss of Purse

emergency fund pickpocket

  • Even though we are very careful, sometimes we might lose. In that time, Immediate action is required. You should call your BANK relationship manager and block your card temporarily.
  • Don’t keep Original IDs in the Purse. Have the Colour Printed version of the IDs.

 

Loss of Navigo Pass or Travel Card

Emergency fund Navigo pass loss

  • If you have your pass digitalized, it requires only 5€ to get the new one.
  • So even though you have an old card, Please buy a new digital one in the Next coming month. It doesn’t cost.

Unexpected home repairs.

  • Water Clogs – The Maintenance requires around 100~400 euros depending on the case to case.
  • Faulty wiring or Fuse down.
  • Better to check with Landlords for the house insurance before check-in the new apartment. So you can avoid the huge expenses at the rented house.

Car Trouble

  • At sometimes, you might need to change the batteries or tires. Please have the mechanic contact or Car service shop numbers in the car itself.

 

Loss or Damage of Passport

Emergency fund loss of passport

  • If you lost your passport, file a complaint in the nearest police station and get a police report. It will help for applying an emergency certificate or new passport
  • Immediately contact the Indian embassy or Indian missions and explain your situation and ask for help. Usually, the process takes a few weeks.
  • In case of a partially damaged passport, you can apply for re-issue of passport under the Tatkal scheme in the Indian embassy.
  • Don’t carry your passport outside unnecessarily unless it’s required on that day.
  • Make sure you have your passport stored in the cloud digitally and it helps temporarily.

The Door gets locked with the keys inside

keys inside the house

  • Keep the Locksmith number on your phone. So you can contact and it costs around 100€.
  • It would be better to have a key at your office place or nearby friend’s house or keep a spare key in your Jacket.

Loss of mobile phones

phone snatch

  • If you lost the mobile phone, you have to call the customer care and block your number. Ask for duplicate sim and it will be delivered to your address.
  • Then Call your Indian customer care and Block that number too. Also, apply for the duplicate sim at the same time.
  • Always have a backup of your phone, Monthly once at Cloud basis or even at the desktop.

 

So Now,  How much we required always at our hand to tackle these expenses. Let me break it down further.

  • At the Bank Keep around a minimum 2500€ in the current account if you don’t have a Credit card, so even if the major expenses happen, you can stay within the budget.
  • If you have an International credit card, Keep 2000€ minimum in your account.
  • At the House, Keep 200€ to 400€ as cash.
  • In the Purse, have as minimum as possible, Not more than 30€. Since Most shops in abroad accepts card payment.
  • In the Back case of your phone, have 10€, it might help in case if you forget your purse at home. (No one forgets phone at home)

Loss of Job

job loss

Typically, in this case, due to unforeseen event happen at the workplace, you might lose your job and it should not stress you down and should not make you travel back to the home country. Always have 5~6months of your monthly income.

How to build such Emergency fund when we land abroad ?

  • When you arrived at work in abroad, you will receive your first salary. Don’t get excited and start spending lavishly.
  • Develop a monthly budget and plan your spending accordingly.
  • Pay your rent, utility bills and debts first.
  • Avoid credit cards.
  • Don’t plan for any expensive trips before arriving at this fund. Understand your financial commitments.
  • Don’t buy unnecessary gadgets or clothes. Look for Delayed Gratification way.
  • Cook and eat because it saves a lot from your hand. If Plan your meals, Health & Wealth comes automatically.
  • Look for a side job, even a small amount can help you a lot.
  • Once you saved an emergency fund, you can have fun and enjoy your overseas time happily.

The main idea behind this email is that the more savings you have in your account, the safer you become. But it doesn’t mean that you should not transfer.

Anything surplus to the amount mentioned above, you may send to your dear ones or transfer & use it for other self-purposes.

So when we, expats, stay away from our families, we have to make ourselves better and we cannot bug others to help us at that time.

So, start saving today and have an Emergency or Rainy day Fund.!! Happy Investing!

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