Saving money can be tough, especially if you have been living paycheck to paycheck. However, it is important to set aside an emergency fund so that you can handle the many situations that life can throw your way. These are a few examples of situations in which you might be really happy that you have an emergency savings fund set aside.
1. You Get Sick or Injured
The truth is that getting sick isn’t cheap. If you find yourself in need of medical care, you might have to shell out quite a bit of cash in out-of-pocket expenses. Plus, not only do you have to worry about the cost of seeing a doctor and buying medication, but you also have to worry about missing work and losing that income because of it. If you have an emergency fund set aside, however, you can focus on getting better rather than worrying so much about money — or a lack thereof.
2. You Have to Take a Pet to the Vet
If you are like many people, you might see your four-legged furry friend as another family member. If your pet gets sick, you will probably want to take it to the vet immediately. However, the average vet visit costs around $550, and if you are like a lot of Americans, you might not have this kind of money just lying around. With an emergency fund, however, you won’t have to worry about not having the money that you need in order to take Fido to the vet.
3. There’s a Major Problem with Your Home
Owning your own home can be a wonderful feeling, but it can be costly as well. Having a leak in your roof, a major plumbing problem or another serious issue with your home can be a big deal. A lot of people don’t plan ahead and save up for these types of problems, but a savings fund can help you ensure that you are prepared.
4. A Major Appliance Breaks Down
Even though modern appliances like washing machines, dryers, refrigerators and dishwashers are designed to last for a long time, they do break down from time to time. If an affordable repair won’t fix the problem, you might find yourself needing to replace one of these essential appliances, which can be pricey.
5. You Have Vehicle Trouble
You probably rely on your vehicle as a means of getting back and forth to work. Having your car break down could be life-changing, but if you’ve got money set aside in the bank, you might find that taking care of the problem is easier than you thought it would be.
As you can see, there are a lot of different situations in which having an emergency savings fund can be incredibly helpful. Luckily, if you are diligent and set aside money each time that you get paid, you might be surprised by how quickly you are able to build up this fund.