Emergency Money – Why It’s Important to Have Emergency Money

In the event of an unexpected circumstance like a family member getting sick, unforeseen travel expenses, or an unusually high utility bill, getting a loan can be a little tedious. When you need immediate cash, a loan might be your best option. But what do you when there is no time to settle requirements and have a lender run a personal credit check on your records?

People have said it time and time again, “The best time to plant a tree was ten years ago.”

It’s great if you’ve taken that advice but for those who haven’t and still can’t see the importance of having emergency money, below are a few reasons why you should start saving for emergencies.

1. Sudden job loss
An untimely termination from your job can be very taxing emotionally and financially on the individual. Job is actually the primary reason why everyone needs to have an emergency fund, or at least start saving for one. Now that your main source of income has been stripped away from you, only an emergency fund may be able to come to your rescue. Your income may have stopped coming but the bills and expenses wont.

2.Unexpected need for medical care
In the face of an accident or a sudden need for medical attention, serious money is needed. Hospitalization bills and emergency room expenses can be very costly most especially if the individual does not have health insurance. But even so, there are still some minor costs that your insurance can’t help you with. Expensive medical procedures like surgeries may need a little bit more than what can be covered by your insurance and might require you to shell out some cash straight out of your pocket.

3. Unexpected Family Death
In relation to huge medical expenses, funerals can also be very draining not just emotionally but also financially. $10,000 might not be enough. Things could be easier if the deceased love one has life insurance to cover funeral expenses but even so, getting the cash from the insurance company may take months.

4.Home Repairs
Insurance can also save you from renovation and repair expenses, yes. But what do you if the deductible is too high? Do you have enough to cover the cost? Also, insurance does not cover everything. You might just need to pay for other expenses on your own.

The situations presented above can be very depressing especially if you haven’t started saving for emergencies. But don’t worry too much, there still another alternative for you to choose. When faced with a financial crisis that requires immediate action, you can always ask Tree House Loans for help. A UK based financing company that prioritizes your financial needs. With low APRs, transparent interest rates, short term loans and flexible conditions, your financial crises can surely be averted in no time.

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