Having an emergency fund is often considered an essential thing to possess for various reasons. However, during this economic climate, it is even more important than normal because of the turbulent circumstances the economy finds itself in.
An emergency fund is more critical now than it has ever been before
With the economy being rather irregular and unpredictable at the moment it is even more crucial to be prepared for the unexpected. You just do not know when something could happen to derail your monetary standing or when something can fail. An emergency fund is the greatest way to prepare yourself in case some expenses come up out of the blue. You never know what you could end up needing some extra money for, whether you need to hire a divorce lawyer
because your marriage has broken down or medical bills come about unexpectedly.
Debt can easily fall upon those who do not put together an emergency fund
Should you not have an emergency fund, finding yourself in debt is a real possibility. This is because if money is needed in an urgent manner, and you do not have anything to fall back on then, you may feel like the only option is to loan the money. Once in debt, you can end up in a circle that is extremely difficult to get out of.
An emergency fund can also have a positive impact on your health too
An emergency fund is also advantageous for your health
. After all, we all know that financial worries can be a major cause of stress and strain for a lot of people today. Many people have sleepless nights because of money worries, and it can take a big toll on their health. You only need to research the negative effect of stress to see the true damage that it can cause.
If you have children, making sure you are financially secure is even more important, for more reasons than one
If you have children or other people that rely on you in your family then it is even more important to make sure you are financially secure
. You never know when your child may need money for school or when they may end up needing braces. You never know when an elder family member may be taken ill and may need you to supply care for them.
So, time to start planning and putting together that emergency fund for your future
Putting away a bit of extra money every so often is a great way to save and prepare for the future. You never know what is around the corner and in the current turbulent economic climate, it is certainly best to prepare for the worst. By having an emergency fund you are ensuring that if and when times hit hard you have enough money to live off. It will also stop you from getting yourself into debt and prevent getting increasingly stressed.
What advice would you add?
Contributed post. Feature image via Pixabay