What are emergency fund benefits?
Have you ever had an expense that you could not pay for? Maybe someone fell and broke their arm and you did not have enough money for the medical bills. Or maybe your refrigerator needed repaired and you did not have the money to pay for the repair.
And yes, both of those things needed paid for…so you just put it on your credit card.
Have you ever lost your job?
Or, has your spouse lost their job? What did you do? Did you panic because you did not have the money to pay your bills? Not enough money to feed your family? Not enough money to keep your house?
If any of those things (or similar) has happened to you then you already know the benefits of having an emergency fund. Sometimes called a ‘Rainy Day Fund.'
So, what is an emergency fund? An Emergency Fund is money saved for emergencies! (Check out this post HERE).
Yup – as simple as that.
There are thousands of reasons why an emergency fund should be a priority. Here are the top 10.
10 reasons you need an emergency fund: Emergency fund benefits.
01: Trying to Pay Off Debt
– If you are trying to pay off your debt, an emergency fund will help you stop adding to that debt. There are always financial bumps along the way. Your emergency fund is there to help you get over those bumps without incurring any more debt.
– Make sure you are include adding to your emergency fund when setting up your budget.
02: You Own a Home
– Owning a home is great! But with all of that awesomeness comes expenses. You need a new roof. Your refrigerator needs to be repaired. Your lawn mower quit. All of those things require money. And, since the goal is to NOT incur any more debt – you need an emergency fund to cover those expenses.
03: Bigger than Expected Tax Bill
– Uncle Sam wants his share. Sometimes you are under withheld. An emergency fund will ensure you have the money to pay that tax bill and not incur interest too.
04: Emergency Surgery
– Even with the best insurance, there are always medical bills when you or a family member becomes sick or injured. Having a fund on hand to cover the out-of-pocket expenses will really make things better. Medical co-pays can be steep. Most times in the thousands…and that is only if you have insurance.
05: Pregnancy
– Babies are so cute. But, they can be expensive. With all of those sudden expenses you can rest assured that YOU have an emergency fund to pay for those bills.
06: Lose Your Job or Your Hours Are Cut
– What happens if you lose your job? Or your hours are cut? How are you going to pay those bills? Feed your family? When you have an emergency fund you know that all of those expenses are covered.
07: Getting Divorced
– Divorce is definitely an unplanned event. And, getting a divorce costs money. Not counting the lawyer fees, there is the new apartment, furnishing and all that goes with moving to a new residence.
08: A Death in the Family
– The passing of a loved one is hard. It is even harder when you don't have the money for a funeral. Save for that rainy day. So you can bury/cremate your loved one properly.
09: Natural Disasters
– A natural disaster can happen at any time. With those disasters come loss of jobs, houses, cars, food…and everything else. How will you get your life back on track? With an emergency fund you can get there at a much quicker rate.
10: Car Repairs
– Cars need repairs. Oil changes, new tires, transmission repairs. Save money so that you can do all of the maintenance and repairs that are needed. This will ensure that your car will last much longer. Which saves you from buying another one soon.
And there you have it.
10 emergency fund benefits!
How much money do you need for your emergency fund?
I would like to suggest 6-9 months of cash. That is 6-9 months of living expense money that you would spend… SUBTRACTING any non-essential spending. Like clothes, eating out, manicures, etc. Because this is an emergency…and you need to step back and not spend.
Need more help? I got ya covered:
Now, sometimes life can get pretty overwhelming, right? Especially when you are trying to save for something!
And sometimes, when you are overwhelmed, stress sets in.
And when stress sets in it is sometimes difficult to be happy or joyful. So, please don’t let stress have the last word!
Go on and take a look at the ‘Top 5 Stress Reducers’ (Action Plan included). So that you can eliminate what causes you stress and get on the path of living a joyful life.
What is Joyful Living all about?
Joyful Living is ALL about not letting let the circumstances of YOUR life determine who you really are. You learn to choose YOU instead! Not sure how to do that? Let me help!
To begin, go ahead and read:
3 Financial Mistakes Most Women Make
Looking at Life Through the Lens of God
5 Ways to Get Ahead Financially
must reads
Marriage Killing Money Issues
check 'em out
