Let’s face it, 2020 was a year of trials and tribulations. Many of us struggled financially, and sadly most of us are not prepared for financial downfalls in life. If your one who doesn’t have an emergency fund, raise your hand.
Evidently, that used to be my family too. It always seemed like there was somewhere else that my money needs to be, groceries, bills, mortgage, car payments, insurance companies, debt, and education for the kids. At the end of the day, there really wasn’t much to put towards an emergency fund, and while it should have gone there… Did it? No.
Financial research estimate that we should have 4-6 months of our income in savings. The reality is, that’s daunting and scary. Breath, it takes time. No one is expecting you to build that emergency fund tomorrow. It will take a few months to years to even get 4 months saved for many of us. They recommend starting at $1000. Once you have worked at paying down debt or gaining some additional income (passive income!), you can increase that and grow it to your 4-6 months of income.
So, how and where do you start savings? An emergency fund should be where you can access it, but not too easily accessible that you can spend it when you want money for something you don’t really need. It should also be in a Tax-Free Savings Account (TFSA). This is where MOKA comes in!
What is Moka?
Moka is a Canadian app that was made to help Canadians save money without breaking the bank. Reach your goals faster, and enjoy life.
Moka says “Two thirds of Canadian millennials don’t have an emergency fund and 60% have not yet started investing”.
In other words, we millennials are ONLY 20-30 years away from retirement. If you haven’t started saving/investing its the time to start. Moka costs only $3/month to use, but honestly, it’s worth the investment in the return you will receive.
The Moka app automatically rounds up your everyday purchases. It invests the spare change, making it possible for everyone to start investing with no minimum investment, a lifestyle change or financial knowledge required. Inside the app, you’ll connect it to your bank accounts; each time you make a purchase, Moka rounds up. If I buy a coffee for $1.30, Moka will take the $0.70 and save it for me.
Furthermore, Inside the app, you can also choose how fast you want to invest; I choose to double (2x) my investments reaching my savings goals quicker. So rather than saving $0.70, Moka will withdrawal $1.40. My withdrawals are made every Monday; I don’t notice it. Doesn’t cause issues with my budget; it works well.
What if I have $0.00 in my account?
I know what you’re wondering, what if I have no money in my bank account? Recently Moka has taken to changing how their systems work. They will no longer withdraw from your account, saving you additional fees from your bank for withdrawing on no money.
Why do I love Moka?
My family has used Moka for at least a year in a half now, and we have over $1500 in an emergency fund saved. We recently “changed” our goal with Covid-19 and not being able to travel currently. We are using Moka to fund our “travel” budget for 2022 (hopefully). In hopes of taking my daughters to Disneyland!
Truthfully, if I am going, to be honest. I overlook the withdraws from my bank account. They’re in such small amounts every Monday, but they do start to add up after a few months. It’s not a get quick rich saving account, but it definitely helps for those who don’t have the drive to save or like to spend spend spend. It’s also a great way to dip your toes into investing without having a lot of knowledge.
Accessing your funds?
Lastly, withdrawing your funds from your Moka account is easy. Since it’s already connected to your bank account. All you need to do is click a few buttons in the app. However, it does take 24-48 hours to withdraw the money (giving you time to decide if you really need it) straight into your bank account. Click the image below, and start investing today!
**Moka Affiliate, clicking on the Moka link and making an account can lead to me making a few small dollars. Thank you in advance for considering the next step in your investing years”.