Let’s say you’re trying to finish a home project and you’re using your old log splitter. Then suddenly, while you’re having the time of your life, it breaks! The worst part is it can no longer be repaired! Obviously, you’ll start worrying about how you can complete the task when you know there won’t be a next time. Plus, you’ll be stressed about where you can get the money to buy a new one. However, if you have an emergency fund, you can remove all the worries, calmly check out the best electric log splitter out there, and purchase another!
Having an emergency fund won’t stress you out about unannounced happenings, which is why you need it.
An emergency fund isn’t only beneficial when there are materials and appliances you need to repair and replace. It’s also useful when…
You had an accident
You can’t tell when you’ll encounter an accident, so you need a separate fund for your unexpected medical or dental bills. You might have insurance, but they don’t guarantee that you won’t pay a single dime. Other hospital operations and procedures aren’t covered by your insurance too, which means you’ll have to get some money out of your pocket. If you’re saving up for a brand new car or something else, getting money from your savings will be a pain in the ass. So, for uncontrollable events that could happen, it’s best to stay ahead of the game and save.
You need to repair your car
Auto repairs can take you by surprise. And most of the time, the amount of cash you need to spend for these repairs make your jaw drop. Using your car daily for transportation demands a lot of maintenance procedures from your end. Even if you think you’re taking care of your vehicle, you might fail to see a few parts that need replacement. Then you’ll just discover them once the car shows noticeable symptoms or starts breaking down. This is where the emergency fund enters the scenario. If you’ve allotted a few bucks for auto repairs, then you don’t have to disturb your savings or your credit card. Aim for less stress!
You need to travel immediately
As painful as it may sound, a family member’s death could be the reason for an immediate, unexpected trip. And of course, you won’t only pay for the costly late-minute plane tickets; you’ll need pocket money as well. If you’re a businessman, an emergency meeting outside the country could also cost a lot. Which is why, ladies and gentlemen, you need to start saving for an emergency fund.