 |
| Saving up your hard-earned cash to stash away an emergency fund? |
Saving up your hard-earned cash to stash away an emergency fund?
Well, it can be a hard sell. Spare cash can be hard to come by, and, after all, taking a vacation is a heck of a lot more fun.
Or at least a lot of us seem to think so. The idea behind an emergency fund is to store at least six months of net income for the sake of “just in case.” Just in case your job goes “poof.” Just in case your car conks out. And a select few other things we’ll explain below.
Does that mean an “emergency” outfit for the film festival (rumor has it Jude Law will make an appearance)? That big trip your teen suddenly wants to take this summer because “everyone else is”?
Not exactly.
We’ve written before about exactly what counts as an emergency. One of the biggest reasons to have an emergency fund is to avoid going into debt for a cost you just can’t avoid (i.e, not celebrities or peer pressure).
In our survey above, 31% of respondents said that credit card debt was a significant impediment to reaching their financial goals, and they each had an average of $5,000 to pay off. Well, guess what? If they had an emergency fund, they shouldn’t need to get so far in the hole in the first place.
Don’t believe us? Planning to spend your money on something sexier? Nothing’s sexier than being worry-free.
Here are the top seven reasons you need an emergency fund:
1. You’ve received a Pink Slip
It usually isn’t as dramatic as Donald Trump proclaiming “You’re fired!” In recent years, it’s looked more like rounds of layoffs spurred by economic turmoil. Or maybe you chose to resign because your job is taking a serious toll on your mental health and you were burning out. Whatever the reason, you need a way to pay your bills until you establish another source of income–and your emergency fund should be it.
2. You Can’t Shake That Cough
Robitussin isn’t cutting it anymore. You need to go to the doctor, and then maybe the doctor again, and possibly even the hospital. Most health insurance plans only go so far–when it comes to hospital visits or other major medical costs, it’s likely you’ll be required to supplement your coverage (if you have it). With an emergency fund, you won’t have to choose between your well-being and your rent.
3. The Only Job You Can Get Is Three States Away
According to our survey, 60% of respondents have, at some point, had the experience of being unemployed and looking for a job. And as we all know, when things are getting financially tight, we need to consider any suitable position that crosses our path … whether it’s where you live … or in Portland. Between finding new housing, arranging to transport your things and the million other little costs that come up along the way, a move is expensive, but it can be unavoidable.
How can you help finance an emergency move? You guessed it.
4.You find yourself with a debilitating illness.
If you’re too sick to work, you could lose your job. And even if you qualify for short-term disability, you could wind up living on less than your full salary. An emergency fund could help you make it through
5. You Need to Get to the ER. Stat.
Did you know that in many cases, you have to pay for some or all of an ambulance ride to the hospital? (And if you don’t have health insurance, it’s even more likely you’ll be responsible for covering the whole cost.) If you get hurt enough to spend time in a hospital or emergency room–maybe even hurt enough to need surgery and physical therapy–you can’t always rely on insurance to cover the full cost.
6. Someone Close to You Passes Away
No one likes to plan ahead for mourning, but if someone you love does pass away suddenly, “I can’t afford the plane ticket” is the last thought you’ll want to have. If you have to travel to (or pay for) a funeral, burial service or any other bereavement-related expenses, your emergency fund can keep those charges off your credit card.
7. Your Roof Starts Leaking
If you own your home (like 70% of you said you did in our survey), you know that there are few things more ominous than watching the paint swell and crack above your head. It’s right up there with discovering a flood in the basement or setting the kitchen on fire before a particularly ambitious dinner party. First, make sure you have homeowner’s insurance. But, then, if an unexpected home-related expense pops up, rest assured that that’s part of what your emergency fund is there for.
If you are finding in difficulty in managing your emergencyfund
Leave a missed call @ 022-62116588
No comments:
Post a Comment