May 17, 2019
Why Everyone Should Have Emergency Savings Put Aside
You’ve probably heard from money experts that everyone should have an emergency fund. Far too many people rely on their credit cards or assume they can borrow money if they’re really in a pinch. However, having an emergency fund put aside is much more reliable than putting yourself into debt or burdening your family.
You should have at least a few months salary put aside to protect you and your family if things go sideways. Here are some of the biggest reasons why you need to have an emergency fund put aside.
You never know when you or your spouse can suddenly find yourself unemployed. Whether you’re injured on the job, or the company wants to make sudden layoffs. In order to ensure that you can take care of your family, you should always have at least several months salary on deck.
Putting enough money aside to have several months salary in savings may mean having to give up certain pleasures for a while. However, the peace of mind knowing that you and your family is taken care of if you don’t have any money coming in is worth it.
You never know what can happen when you own your own home. A pipe can burst in a split second, or a tree could fall on your house. As a homeowner, it’s up to you to cover the damages.
Usually, repairs don’t come cheap either. Therefore, having a significant amount of money aside is helpful to ensure that you can pay for the damages, whatever the price.
Cars are tricky things. One minute they’re running fine, and the next minute they’re breaking down on the side of the road.
You can never be sure when the car is going to let you down, regardless of how old it is. Having emergency savings means that you can pay for any unexpected repairs without worrying about going broke.
For many people, their car is essential for them to be able to go to work and take care of their family. Therefore it’s critical that if something comes up, you can fix it.
No one wants to assume the worst can happen; however, things can come up suddenly with our health. While insurance may cover some of the bills, it won’t cover everything. Savings makes it possible to cover the medical costs for you or your loved ones should something serious happen to your health.
Unexpected costs can come up when we least expect. Whether it’s last minute travel or having to replace a broken appliance. Miscellaneous emergencies can happen at any moment. Your emergency fund is there to make sure that you’re covered.