Others do not know how important it is to have an emergency fund ready and available to use when needed. People think that living by the paycheck, as long as all their daily needs are provided, is enough. This article will let people understand the need for such funds and who needs it the most.
The importance of emergency funds
As the name of it implies, the fund is used when an unexpected circumstance arises. People are not too particular with it and are all satisfied providing his/her and their family’s daily expenses, such as food, clothing, and utility bill. Good if fortune from online casinos and their sister sites is always at their back when an urgent need for money comes, but unfortunately this is not always the case.
Depending on just one income
If you only have one income to depend on, an emergency fund is highly recommended. Illness or job loss may come unexpectedly, and if this happens covering up with the continuous expenses may be a huge problem to face. When one loses his/her job, electricity consumption, food, rent and other daily expenses will not stop. Having an emergency fund will help one survive until he/she finds a new job.
Contractor or self-employed
One would never know when his next project will come or if there is next project to come after the current project he/she is working on. Having an emergency fund can keep his financial problems at bay when there are no more projects coming his way yet.
Emergency funds must be higher if there is a family to feed and give shelter to.
Living in an owned home
One of the reasons why one needs an emergency fund is if he/she is living in his own home. Repairs of roofs, floors, plumbing and the like may come without notice, hence keeping a fund to cover it up can help one attend to his home’s urgent repair needs.
Living far from their families
Families are without a doubt anyone’s first savior when an emergency financial need arises. If he/she is living far from his family, it is only necessary that he keeps an emergency fund to sustain any emergency expenses including accidents. Families can extend their help but if they are living far away, it may take time for them to send the money.
As soon as one distances himself from his core, it is necessary that he starts saving up for emergency funds.
Has a recurring medical issue
Recurring medical conditions may require one to take long leave from work, hence consuming all his/her paid leaves. Anyone who has a recurring or current medical condition, needs to have an emergency fund to pay for regular medication and routine treatments when leaves are already unpaid or source of income declines.
Anything related to health must not be set aside, as there is nothing more important than taking care of health.
Making sure that expenses, expected or unexpected, are covered to ensure an enjoyable and comfortable living.