Two of the main focuses of my blog are Financial Literacy and Money. The following contributed post was written by Faye McDonald. It discusses the Seven Times You’ll Be Glad You Have An Emergency Fund.
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You can’t always predict what’s going to happen in life, but you can make your finances disaster-proof. The best way that you can do this is by having an emergency fund to back you up every step of the way. Ideally, you should already be managing your money each month and budgeting for savings, but you should also be paying into a separate savings account for emergency reasons. Obviously, you won’t be putting in the same amount each month because you need to be able to keep living the way that you want to live. However, there will be times you will be exceedingly grateful that you had an emergency fund to fall back on and below, you can find seven times in life you’ll be whispering thanks to yourself for your own forward thinking!
Job Loss. It doesn’t matter how long you’ve been in your job, no one is safe from being made redundant or losing their job. Companies fold all the time due to tough economic times and you have to be prepared for this. Losing your job means that you will be behind financially, and your emergency fund can save you from that.
Divorce. There’s something horribly stressful about a broken marriage. Divorce is costly, and your emergency fund can back you up while you’re paying for lawyers.
Accident. Being in financial difficulty when you’ve had an accident is stress on top of stress. You can speak to Tenge Law Firm, LLC when you need to figure out if you are due compensation from your accident. There’s no need to get behind on bills if you don’t have to!
You Quit. Sometimes, you don’t lose your job due to the recession or the fact your company is folding. Personality clashes mean that you could find yourself out of work off your own volition and you decide to quit.
Disaster. You can’t control mother nature and she is a fearsome beast. An emergency fund can be there for you if you lose your home or are dealing with a flooded house after a disaster. You can incur costs when you go through a natural disaster, and your emergency fund can absorb those.
Supporting Spouses. If your other half is out of work suddenly, or takes ill, you are the main breadwinner. Your savings could keep you above water if your money isn’t enough to support the pair of you.
Widowed. If you find yourself in a situation where you are suddenly without a partner at all, and they have passed away, you will need to have your emergency fund supporting you through a funeral and the expenses incurred there.
You see, an emergency fund isn’t something that is an inconvenience. On the contrary, it will be there for you for when life becomes an inconvenience instead. Most of these situations happen to us in life, it’s important that you manage your own money and keep yourself safe at all times.