Should an emergency arise you will have immediate access to funding.
Many people do not have emergency funds, and it puts them in a dangerous financial position.
Receiving Your Marching Orders
Economic turmoil and professional burnout are two reasons why you may not have a job any longer. Until you can secure a new source of income, something has to pay the bills. An emergency fund can give you the breathing space you need to re-establish yourself.
Your Health Insurance Doesn’t Go Far
Medical emergencies arise, and they are not always as dramatic as they appear on television. Many health insurance policies will not cover the full cost of your treatment. They will only cover so much, and that can leave you thousands of dollars in the hole.
A Move Away
If we assume you found a new job, you may well have to skip town or move to another state. It’s costly to move, especially if you have to rent temporary accommodations while you sell your existing home. An emergency fund can finance this move in the short-term. The best part is you should be able to start rebuilding the dent in your fund immediately.
The Car isn’t Working
One disadvantage of living in the US is everything is too big to make walking possible. Most people live a couple of miles from the nearest store and about a half-hour from work driving. It’s not always viable to walk or use public transport. When your main mode of transport isn’t working, this is a type of repair that can’t wait.
Peace of Mind
Whatever life throws at you, there’s no doubt you’re defenseless. You shouldn’t have to deal with worries over money at the same time. We believe you should have an emergency fund to help distract you from the rigors of whatever trauma has occurred in your life.
Don’t underestimate how much peace of mind can matter. In times of peril, it’s best to make decisions with a clear head. It’s simple to setup an emergency fund. Begin contributing what you can to it each month and separate it from the rest of your finances. Don’t be the type of person that has to look for an emergency loan. If the time comes, feel free to withdraw from it without feeling guilty. Will you be starting an emergency fund for your family today?
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