Almost everyone plans correctly for the worst, but there are those out there that don’t squirrel cash away every month for the sole purpose of saving money. This isn’t usually due to ignorance about emergencies, but purely because there just isn’t enough surplus cash every month to warrant getting any put away in the bank.
Having an emergency savings account when you are a family is an absolute must. An emergency fund is best referred to as a stash to cover those horrible moments that life throws at you. Expecting the unexpected is a must in the world we live in now, with the financial markets being unstable and job losses at an all-time high! Stress is something you have to cope with when the unexpected happens, but if you can avoid the stress altogether, you would, wouldn’t you? We’ve put together five of the best reasons for having an emergency savings account, so take note all you out there who as yet have no money put aside for the worst!
- Job Loss. There’s nothing more stressful than losing a job when it’s the sole source of income that you rely on. It’s recommended that you have between three and six months of expenses tucked away in the event that the company that you work for goes bust. This can give you a cushion for your expenses while you search for more work. Without it? You’ll likely have to take the first job that comes along.
- Car Repairs. Cars are expensive to own, even beyond the initial outlay of buying. You have to consider that at any moment, you could be taking your car for repairs if something goes bang. Looking up how much it should cost with www.autoco.com.au/scratch-repairs-canberra/ can help you effectively plan your car fund. It’s not nice to have your method of freedom taken away, so make sure you can fix things fast.
- Pregnancy. Sometimes, the unexpected is an addition to your family rather than something that takes away from it in the way that job loss does. Having an emergency fund for a new baby is smart, as you won’t have to worry about affording a crib!
- Illness. No one can really plan for having an illness. You can’t time cancer, or an ailment that keeps you bedridden. Instead, you can plan your emergency fund to have enough cash to cover you for a year or more if possible – just in case you have to leave your job due to it.
- Divorce. No one wants to think about separating from their partner, but it happens. No one wants to think about what they would do if they are left alone, but it happens. So, making sure you have back up money to rent a new home if the worst should happen is smart. That doesn’t mean you’re planning to split up, it just means you’re ready in case that happens.
An emergency fund can keep you safe – and isn’t your safety and security worth something?
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