Chances are most people have some extra money lying around particularly for a bad situation, which in this economy, where volatility is plentiful, and uncertainty in terms of employment can strike anytime, is a real possibility.

Whether this is in the form of savings accounts that are not to be touched, or foreign currency notes that cannot be readily spent, everyone likes to save for a rainy day, or bit by bit, accumulate funds for a future need.

This is more important and even crucial for expats that have already made a permanent move to a foreign country.

Regardless of how much time you have spent in a foreign country, there is always marked difference between how much you know about how things work in your home country, and the same in the new destination.

The same applies to preparedness of emergencies. Most expats must absolutely plan for emergencies faced in the new state, which can materialize at any time and in relation to the most trivial matters.

Why Is It Necessary?

Setting up an emergency fund means putting aside money for the purpose of unforeseen and unaccounted for events.

Whether you need to travel to your home country for something you did not see coming, or an item of utility suddenly gave up and does not fall under warranty, these funds can help deal with sticky situations, which is why it is alarming that most foreigners never even consider making emergency money a part of their international savings in Switzerland - GlobalEye.

An important motivation for people to resort to offshore emergency funds for example, is the awareness that things may go politically or economically wrong in the countries they and their finances are associated with.

Alongside dealing with these kinds of instability, emergency funds can be held in the currency of your choosing, and are readily accessible.

To get the most out of these funds, the most important determination is narrowing their use down to the potential emergencies that may arise, because this will help determine the size.

Typically this list will include children or parents living elsewhere, unplanned travel, or health expenses for you or your family.

Role of Banks And Advisors

Financial planners can help you make this entire process easier by advising on the most beneficial balance.

They can assess your financial situation and circumstances and advise on not putting aside too little or too much. Both of these arrangements have risks, since not having enough money for an emergency presents all sorts of problems, and too much being set aside means you will not be able to use the money to make profits or returns.