One afternoon, I was busy browsing my Facebook account when I read a post from my friend Jethro (jethrosas.com). He posted about the emergency fund and buffer account. Curious about the meaning of the latter, I send him a message asking him about it. He quickly replied and explained to me the meaning of buffer account.

As per Jethro, it is a spare money equivalent to my monthly income. If there’s a delay in my salary, I can use my buffer account to pay my bills on time without stressing myself or worst lend money to someone. Of course, the latter scenario is a big no, no. I'll start saving for my buffer account next pay day. I guess I need to extend my shopping banned for two to three months to achieve it. I can do this!

I am no expert in this financial field, but I believe if we start saving now we can have a debt free life and retire early. Do you have a buffer account? How much are you willing to save for it? Share your opinion on the comment section below.