An emergency fund, contrary to popular belief, is different from your savings. This fund will save you the time of looking for money when unexpected things happen, and it will save you the time of stressing out too!
Here are the benefits of having an emergency fund:
You can pay hospital bills
Being admitted to a hospital because of an accident can’t be foretold. You might have been allotting money for your monthly check-ups, but what about unexpected ones? Dental and medical bills can leave your eyes in shock, and your jaw dropped, so the best thing to do is save up for these mishaps. Bear in mind that your insurance cannot cover all hospital operations, so you’ll have to be prepared to get money out of your emergency fund.
You can repair or purchase appliances immediately
Suppose your refrigerator just stopped working, you wouldn’t want the food to rot, would you? So naturally, you’ll be troubled by the need for repairs or worse, the need to buy a new refrigerator! With an emergency fund, you can calmly call and ask for a professional to fix it without worrying about the money. There are also other home repairs (e.g., plumbing) only handymen can do, which means you’ll have to spend money again. If you have a fund for unpredictable occurrences, you won’t have to panic about such things ever again.
You can send your car for repair right away
Cars are convenient vehicles that have become a necessity in this busy world. But they also need to be maintained or repaired once in a blue moon. Auto repairs might even surprise you. Take note that they aren’t cheap! If some parts need to be replaced, you’ll have no choice but to spend cash right then and there. This is where the emergency fund comes in. It’s for that time when your car decides to break down. Allot money for auto repairs now and save yourself from stress. Your car already broke down—you don’t have to break down too, you know!
You can travel instantly
If there’s an emergency someplace else, perhaps caused by a family member’s death, the plane tickets could be expensive because you need them at the last minute. It’s essential to keep an emergency fund for unexpected travels so you won’t need to fret about the money and just go on your way.