You’ve probably heard the importance of saving money from an early age. As soon as you get out of college you’re told to save for retirement. Once you have kids, you need to create college funds for them.
What people don’t talk about as much though is having a nest egg in case of emergency. Here are a few reasons why an emergency fund is essential.
Why You Should Start Saving Today
If you’re a homeowner, you’ve probably experienced that dread that comes when something in your house stops working. You just never know how much it will cost until the repairman comes out to see about it. Will you be looking at a simple fix, or will you need an AC replacement Tampa? If you have a major issue arise with your home, you could be looking at spending thousands of dollars.
This is where having an emergency fund comes in handy. Even if you don’t have enough to cover all of the costs, it will definitely help alleviate some of the pressure.
You Lose Your Job
Losing your job is scary. Depending on the market, it can take months to find a new one. You’ll need something to live off of during that time. This is why it is so important to have at least six months’ worth of living expenses saved up.
This will give you the opportunity to focus on finding the right job for you without having to worry about how you’ll pay the bills for a little while.
Someone Gets Sick
No one wants to think about a loved one getting sick, but being safe rather than sorry can really help in a situation like this. Even with good insurance, medical bills can add up and wreak havoc on your bank account.
While it’s always good to hope for the best, preparing for the unexpected can allow you to focus on taking care of your loved one instead of worrying about the bills.
Saving for an emergency is easier said than done. You might find that you’re living paycheck to paycheck and don’t know where to begin, or you might be tempted to use the money you have left each month to buy something you really want.
However, there are ways to cut costs and find a little extra to put away each paycheck. Talk to a financial advisor, or read up on creative ways to save. It won’t be easy, but in the end, it will be worth it.