Hopefully, you’ve heard by now that you should have emergency savings put aside. Even though it might be tempting to spend all of your paycheck as soon as it comes in, it’s important that you learn how to carefully put money away for emergencies.
If ever an unexpected situation comes up, emergency savings gives you the peace of mind knowing that you’ll be covered rather than going into debt.
But, once you’ve started putting money away, what constitutes being able to take some out? Take a look at some of the reasons you might need to dip into your emergency fund.
Home Repairs
When you own your own home, it’s up to you to take care of any repairs. Whether you need to fix your furnace, fix a plumbing issue, or get rid of pests, it’s up to you to make the calls to get it done. Often home repairs are far from cheap.
It’s a good idea to have a nice bit of money put away to make sure that you can cover it without having to wait. In many cases, the longer you wait to repair something, the worst that it can get. You’re better off having money ready to go to fix it before the problem gets worse.
Family Emergencies
Not everyone has the luxury of living next to their family members. If someone in your family falls ill or has a major injury, it’s probable that you may have to travel at the last minute. Anyone who’s ever bought last-minute plane tickets knows that they don’t come cheap. It’s ideal that you have at least two plane tickets worth of savings put aside just for family emergencies.
Medical Problems
Maxing out your insurance deductible can and does happen if you get seriously ill. When you have a serious medical problem, it’s easy to assume that insurance will take care of it. However, even with insurance, you’ll still need to pay a portion of it yourself out of pocket. A nice bit of emergency savings put aside ensures that you won’t have to worry about covering for your needs and that your health will be well looked after.
Car Problems
It always seems that when cars start acting up, it’s at the worst possible time. If you’re like most people, then you rely on your card to get to and from work every day, so it’s no good not having wheels. If something happens to your car, it’s important that you’re able to pay for it so you can get up and running as quickly as possible.
Mechanics usually don’t charge under a few hundred dollars for fixes, and some repairs can cost upwards of several thousand. Prepare yourself by having a nice bit of savings put aside for car emergencies.
Originally posted on April 20, 2021 @ 3:09 am
