When everything is going fine, the last thing on your mind is putting away money for an emergency. When you have a steady paycheck, good health, and a roof over your heads, you don’t have a worry on your mind.
However, life can throw a curveball when you least expect it. You never know when something can go wrong that throws your life for a loop. When you have kids to look after, the stress can be even more devastating. Here are some of the most important reasons why you should always have an emergency fund put aside for your family.
When you own your own home, you no longer have a landlord to call when something goes wrong. It’s up to you if you need your roof repaired or a pipe bursts.
Failing to have money set aside for emergency home repairs can put you at risk for catastrophe. Knowing that you can repair the home that your family lives in if something goes wrong is critical.
Although no one wants to believe that they could lose their cozy paycheck, you’d be surprised how often it happens. The last thing anyone expects is to go from steady earnings to nothing. Yet, many people find themselves suddenly unable to pay their bills or even cover their basic needs.
Financial experts recommend putting away at least three months’ worth of pay in case you suddenly lose your job. That way, you don’t have to rely on credit cards or borrow money from family if you’re in a pinch.
Although you might not want to imagine, your beloved car is capable of breaking down at any moment. The problem with car repairs is that they’re never cheap. Usually, if something goes wrong, you’ll find yourself having to foot a bill of at least several hundred.
There’s nothing that puts a halt to your life more than losing your form of transportation. Unless you have special insurance, you’ll have to find another way to get to work or drive your kids to school. Emergency savings makes it possible to make repairs to your car as quickly as possible so that you don’t have to worry about how you’ll get around.
Even though you may have insurance, that doesn’t mean that everything is covered. Most of the time, you’ll still have to pay a portion out of pocket. Therefore knowing you don’t have to stress about how you’ll pay for your health is important.
Hopefully, by looking at these reasons, you may need to dip into your emergency fund, you can prepare yourself ahead of time before it’s too late. Even though chances aren’t always high that something bad could strike, it’s better to be prepared than unprepared.