Money for Any Reason You May Need!

Why It’s So Important to Have an Emergency Fund

Life always has surprises, but if you are prepared for them, you can typically cover them with little or no interruption to your normal lifestyle. The problem comes in when you can’t cover the unexpected expense with money you have on hand. Setting money aside for an unexpected emergency is usually referred to as an emergency fund, and here are just a few of the reasons why having this fund in your back pocket can come in so handy.

Working is Sometimes Hard Without a Car

If you commute to work, the likeliness is you drive some, if not all of the way, to work. Now, what happens if your car breaks down and you do not have the money to fix it? This is a classic catch-22. You cannot earn money without working, but you cannot work without the money to fix your car. At this point, you have a few options. You can either borrow the money from a family member, friend, or lending institution, or you can try and live your current lifestyle without a car. Most people could not make this work unless they are able to work from home.

You Pay a Lot More Via Credit

When you have an emergency come up, sometimes that means you need money nearly instantly. When you don’t have an emergency fund, it often means turning to some type of credit line for help. There is the cost of starting the line of credit if you haven’t already, and then there is the interest on top of the repayment. All in all, if you have good credit, you will end up paying just a little over what you have to borrow. If you are one of the many American’s that does not have good credit, you could pay substantially more when all is said and done.

Here Today, Gone Tomorrow

Should you fall into the group of people that is unexpectedly laid off or released from your job, you will need something to survive off of. You will need to be able to afford the roof over your head, your utilities, any bills you have, and food for at least a few months. If you end up unexpectedly without a steady income, your entire way of life could end up at risk. Having an emergency fund to keep you going while you search for a new job will help you have the peace of mind of being able to not jump into a bad job just because it was offered.

Disability Is Difficult on Everyone

Nearly all circumstances of disability are unexpected and costly. If you happen to be in a situation where a disability comes up, you may find yourself struggling to make ends meet. For those who have an emergency fund, they are often more able to focus on the injury and recovery, allowing them to feel better more rapidly over those who do not have this backup plan. Trying to focus on both recovery and getting an income can make life much more difficult for anyone who is not feeling well.

Unexpected Illness or Death

No one ever wants to experience an illness or death in his or her family, but it happens to everyone at some point in time or another. If you have an emergency fund available, you can cover those exorbitantly high prescription drug costs or the cost of a last-minute plane ticket home. This will allow you to be able to focus on the situation instead of the panic over how to help be a part of what your family is currently going through.

No matter which of these unexpected occurrences comes up in your life, an emergency fund would allow you the ability to cover it and not end up in a stuck situation. Keeping an emergency fund available, just in case, leaves you better prepared for anything life decides to throw at you.