Four in ten adults in Cyprus could not cover three months of expenses — Cyprus Mail

In Cyprus, four in ten adults would not be able to cover living expenses for three months, according to a survey by the Organisation for Economic Co-operation and Development. This was reported by Cyprus Mail in an article on the importance of an emergency fund.

Reserve for unforeseen circumstances

The publication notes that savings for an emergency may appear to be money that is not used. At the same time, such a fund can help pay rent, bills and groceries if a person suddenly loses income, without resorting to loans.

The article raises the question of how long a person could cover daily expenses if income stopped coming in. Building a reserve, as stated in the publication, can begin with an amount sufficient for one month of expenses.

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Finance professor's explanation

The topic is explained by finance professor Panayiotis K. Andreou as part of the Money Doctor series, dedicated to financial issues, habits and decisions in everyday life in Cyprus. Andreou is a professor at the Cyprus University of Technology, president of the Financial Wellbeing Institute, and a member of the Scientific Advisory Committee of the Cyprus Financial Literacy and Education Committee.

The Money Doctor series is published as part of a Cyprus Mail financial literacy initiative supported by XM.