Although it can be tempting to use your money freely as it pours in, what you really should be doing is putting some of it away each time. Even though you may think emergencies could never happen to you, believe it or not, you are not the exception.
No one ever expects things to go wrong. It’s only when we least expect things to happen that they sneak up on us, especially if it’s an emergency. The best way to guard yourself against unforeseen things going badly is always to have emergency funds put aside. Still not convinced? Here are just a few of the most common reasons you may need money in a pinch.
Legal Problems
You may find yourself in a situation where you need to hire a lawyer for a legal battle. Whether it’s for a divorce, fighting an insurance case, or even facing criminal charges. You never know when you may need to bail someone out or even yourself.
Rather than feeling helpless, it’s empowering to know that you prepared ahead for a situation like this.
Home Repairs
You never know when something can go wrong in your house and break down when you least expect it. As the saying goes, when it rains it pours, and it usually leads to a leaking roof in the process.
Many people find themselves with a vital appliance or part of their house which has broken down, and they aren’t able to pay for a new one right away. However, planning ahead and keeping savings on hand means that you can go to the store or call a repairman right away without missing a beat.
Car Troubles
Cars are one of those things that always seem to give you problems. It doesn’t matter how old or new a vehicle is, chances are you’re going to have issues come up from time to time.
If you’ve ever had a car before, then, you know that rarely will a repair cost less than a few hundred dollars. In some cases, you may have to repair a primary part of the car like an engine or timing belt which can be thousands.
Having the money on hand to pay for your car can often be a matter of your livelihood. Some people can’t get to work without their vehicle, so your emergency savings is essential to be able to cover the repairs.
Medical Attention
If you find yourself injured or requiring medical attention outside of a routine check-up, then chances are it’s going to cost you a pretty penny.
Even if you have insurance, you will always have to pay a particular portion of the fee out of pocket. Some people are so afraid of the costs involved that they neglect to see a doctor because they don’t have the money to pay for it. As a result, their medical condition grows worse which could have been avoided if they had emergency savings.
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