Most people have heard at some point or another that having an emergency fund is an important part of adulthood. The question then becomes whether you’re willing to put in the work that it takes to put money aside each month or not. The truth is that, as many people know they should have an emergency fund, yet very few of them actually do.
Yet, many people might be more motivated to put money aside if they knew the scenarios that they could greatly benefit from emergency savings. Take a look at some of the most important reasons why you should have emergency savings put away.
If you’re a homeowner, then you don’t have a landlord to take care of your problems anymore. If you need to fix a leaky roof or even get your air conditioning repaired, it’s critical that you have money set aside to pay for it. Rarely do home repairs come cheap, so having a decent amount of money in savings is the best way to ensure that you can cover any unexpected costs.
Lots of people assume that sudden unemployment could never happen to them. However, you never know what can happen that could result in sudden job loss. Ideally, you should have enough money to cover your basic needs for at least several months in the event that you lose your source of income. This is particularly important if you have children. The last thing you want to do is worry about being able to provide for them should you find yourself without a job.
Even with health insurance, medical emergencies can cost a considerable amount of money to cover. It’s important that you have enough money to put aside so that you can take care of your health in the event that you need serious medical care. When faced with injury or illness, the last thing you want to be worrying about is whether you can afford to take care of yourself or not. Part of self-care includes making sure you have the funds to cover any medical expenses you require.
Anyone who’s ever had a car before knows how many problems it can potentially bring. As much as cars are a convenient part of modern life, they can also be extremely stressful if they require to be fixed. Replacement parts rarely cost less than at least a few hundred dollars. If you rely on your car to get around every single day—most importantly to get to work, then you want to make sure that you can pay for the repairs as quickly as possible so that you can be mobile again.