I'm planning to save 15% of my income for emergencies. I live in Ukraine and I am concerned that the local currency may not be stable long-term. I'm also worried about the possibility of banks closing. Should I separate my savings into three boxes? I was thinking of separating them as follows:
- 1/3 in a local account denominated in US dollars or Euros
- 1/3 in the local currency in a state bank account in Ukraine
- 1/3 in a cash mix of US dollars, Euros, and local currency
I don't need the money from the foreign currency account to be quickly accessible.
I will have 10-25% of monthly salary left over after bills, groceries, and savings as outlined above.
Should I keep money in a local bank denominated in a foreign currency, or is it better to keep the money in a foreign currency in cash?
If I don't have enough cash to open an account denominated in a foreign currency, what is the safest way to keep it until I have enough saved to open that account?
Some context: I live in small town (with my parents) working for a minimum wage which is about $60 (after taxes) per month. If things goes well, minimum wage in my country will be raised to about $140 (at current exchange rate before taxes).
Half of my salary is consumed by bills, a small part by groceries (my parents, cover most of groceries).
During last year I managed to "save" about $250 and spend them as planned: some house electronics, English language tutor, and presents. I entered 2017 with $5 on hand and $30 on my payment card.