The Importance of an Emergency Fund
When it rains, it pours.
In other words, when one trouble comes, many follow. And more times than most, one of those will be financial trouble.
Therefore, building an Emergency Fund is what will save the day and you will be glad that you took the time to set it aside.
Here are 5 Reasons why you need to Build an Emergency Fund
Disclaimer: I am NOT a Financial Advisor, Planner, or Counselor. Hence, the information presented here is NOT professional advice. It is my own opinion and exists only for educational and informational purposes.
1
Emergency Pet Care
I remember getting my first bunny. I found her in a friend’s backyard and immediately fell in love. I named her Lucky.
At the time, I was living in a small apartment. I had a small balcony that we both enjoyed from time to time.
As she grew bigger, she started to hop onto the windowsills to enjoy the sun. But Lucky wasn’t so lucky when one day she jumped over the balcony thinking she would sit up high as she did on the windows.
She fell and broke her leg.
With tears in my eyes, I rushed her to the pet emergency room, thinking that they would be able to help. But they would only help if I had the money to pay right away.
Sadly, I didn’t, and I had no choice but to put her down. That day I promised myself that I would stop making excuses and save anything I could. I was heartbroken. My sweet baby went to sleep forever.
If you have pets, then you know this love. They are family and having the money on hand to take care of them when they need it is only one of the many reasons why you need an Emergency Fund.
2
Car repairs
Having a car is like having a house. There is always something that needs fixing. The worst is when you leave your home to have a fun time and, on the way, your car decides to stop going.
Accidents happen all the time. And with some insurance, you are still required to pay for some repairs out of pocket.
In any of these cases, an Emergency Fund is the thing you need. Especially when you need your car to commute to work, shop for groceries, and take the kids to school.
3
Job loss
Losing your job is most frustrating when you do not have any money saved.
You have zero ideas of how soon you will find another job and you have bills coming up.
If you are young and new to your job, you are at risk of being laid off first. So, saving a percentage of your income each month is a clever way to make sure that you have something set aside to fall back on.
If you are unsure of what percentage of your salary you should set aside, check out this article called the 97:1:1:1% Budgeting Ratio for a quick breakdown.
4
Unexpected travels
While unplanned travels are always the best, traveling requires spending.
And that can sometimes be more than just your ticket fee or gas money.
There’s also:
- Passport Renewal
- Visa Requirement– because some countries require a visa to enter
- Vaccination and Medications– again some countries require these to enter
- Pet sitting– if you have pets at home
- Back up rent and bill allowance– in case you must miss work, which means a lower salary that week.
There are lots to consider when unexpected trips come up and you want to always be prepared. That means having an Emergency Fund to turn to.
5
Pandemics
If we have learned anything in the year 2020, it is that pandemics happen. And they can completely turn your life upside down.
Everything becomes uncertain. You are at risk of losing your job, needing to stock up on substantial amounts of consumables, or getting stuck at home with kids who need to be entertained with crafts and such.
All these things will require money and an Emergency Fund will be the one to rescue you.
To Recap, here are 5 Reasons why you may need to build an Emergency Fund:
1. Emergency Pet Care
2. Car Repairs
3. Job Loss
4. Unexpected Travels
5. Pandemics
If you find this article helpful, share it with your friends and family to encourage them to also start building an emergency fund. Do it guys. You won’t regret it- I promise.
Thank You for reading!
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