Reasons why you need emergency money

Are you saving up for a hard-earned cash and stashed it to your savings fund? This can be a hard sell and spare cash are even hard to come by, compared to taking a vacation to your favorite place and just enjoy. According to survey, there are only half of the world’s population who are really saving for an emergency. The facts and idea about having an emergency fund is to store up money for 3 to 6 months, for some people they would go a little further for almost 8 months of cashing in money to their emergency money account. This associates to situations that can only be called as an emergency. It does not only focuses on the life and death situation but with things that are a necessity such as your car’s broken and you need to have it fix or else you’d be using your feet in going to work, perhaps you ran out of budget for food and you need to buy groceries for the next remaining days before your next pay check comes. These are just a few examples of emergency cases.

One of the outstanding reason in having emergency money is to avoid you from having debts which can cause you a handful of problems especially if you can not pay it right away. Can credit cards help you financially? For some people they would say yes because it has almost helped them in so many ways for necessities and the not so important things. But if you look it on the perspective of personal finance, credit cards can only bring you to another level of debt after debts if you can not pay them and the interest rate is getting higher and higher every time you skipped to pay it according to the mode of payment that you have agreed upon.

Being worry-free is better than going to a vacation and after the fun you go back to the reality and face the truth about the debts that you have swiped from your credit cards and other things that had you been attached in debt. Here are reasons why you need to turn the table around and think of the possibilities of building your emergency money.

Unemployment or almost unemployed- if you have received a note that you’d be loosing your job, or you want to quit because your job is burning you out mentally. Whatever are your reasons will be, you need to pay your bills and other things that you owe. At least if you loose your job and you were able to save money, you still have time to find a new job before your saving are running out.

Medical conditions and assistance- at some point in time your health can not sustain the day to day living and it wears out example your immune system may have lowered and that’s the reason that you got sick. This situation is not predictable but is considered to be a foreseeable crisis. In order for you keep up with the medication, applying for an emergency fund or saving your money in a cookie jar is just easy when sickness comes and you have something to pay and buy for.

These are just few among others that are common to happen. Whatever life circumstances may bring, as long as you are ready to face everything you will not be struggling through it and you’d feel safe and secure.

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