Practical Reasons Behind Creating An Emergency Fund Today!
Almost everyone likes to live for today. No one wants to think about tomorrow, let alone save for tomorrow. As a result, one-third Americans do not have emergency savings funds. It is likely that you are one of them. Are you still wondering if you need one? Consider the following situations, what would you do if you had to face one or more of them at the same time? Can your day job cover these unexpected expenses?
Most of the times, we think, emergencies happen to other people. We are immune to sudden whimsies of life. That is not the case. Consider the following 20 examples. These are definitely reason for you to reconsider your take on an emergency fund –
- You lose your job: nobody wants to think about this day. However, not thinking won’t prevent it from happening. This is THE reason you should have an emergency fund. Diving into an emergency fund during your brief spell of joblessness is much better than digging into family savings or taking out another mortgage on the house. The average unemployment period lasts for about 40 weeks now. This is why you need a healthy emergency fund.
- Health concerns:
this can be anything from an inflamed appendix to an unexpected pregnancy. You need to have enough money to prepare yourself for the shock or surprise. All parents at companies without paid parental leaves will understand the importance of this predicament.
- Property tax: sometimes, we end up forgetting many things. However, tax bills have a predisposition to remain in hiding until their last due dates. Failing to pay a tax bill can be severe. From penalties to legal issues, you will have to deal with a lot more than you can imagine. Having an emergency fund will help you pay your taxes even if it is the end of the month.
- Medical emergencies: you can smirk at the thought of the full-coverage health insurance that has your back. However, you will need some out of the pocket cash to pay off the bills immediately. Health insurance companies have verification procedures of their own, and they will take some time in compensating you. If you do not have some cash stowed away for yourself and your family, you will have a tough time paying for the medical bills.
- Identity theft: this is more common than you would like it to be in the US. What will you do when your card gets stolen, or your bank account is locked down because of the identity theft? How will you get to the office or even buy groceries? We have seen cases where banks held up primary check accounts as well.
- There’s some problem with your apartment: it can be a legal issue with your landlord or an emergency fumigation to get rid of roaches. Either way, you need money to stay in a motel or a temporary apartment until you can move back in or find another place to live. There can be multiple other reasons why you may have to leave on an extremely short notice. Having a couple of extra dollars in your pocket will save you from spending the night under the stars.
- You or your spouse needs to start medication not covered by health insurance: there are a number of treatments, therapies, and medicines that are not covered by any health insurance. Although people opt for health insurance to save paying for exuberant medical costs, sometimes, it no-saver. Many times, health insurance does not cover psychological counseling sessions and the medication. If you do not have any extra cash, it becomes difficult to choose between family wellbeing and financial paid parental. Having a stash of emergency cash will help you pay for all medical expenses without thinking twice about the financial wellbeing of your family.
- Your car gives up on you: it is cold out. You run to your vehicle from your door, you barely have time to make it to the office, and your car doesn’t start. This is not the “surprise” most of us want early in the morning. Nonetheless, you will have to pay for the mechanic and the servicing to get you ride working again.
- Emergency pet care: this is a reality for most pet owners. Whether your pooch swallows a penny or he gets an infection on his tail. You will seek out the best medical care for them immediately. What if, this happened when you had no money, and you were far away from payday? Medical emergencies for pets are truly unpredictable. With the increasing pollution and allergens around us, having emergency pet-care money is a must for all pet owners.Most pet owners have pet insurance. However, similar to human health insurance, the company will take at least a few days to evaluate the documents and then grant reimbursement. Even then, you will end up spending big bucks from your pocket. We know of people who have paid $14,000 for emergency surgery for their dog. They got back only about $5000 from their pet insurance policy. This means, this unlucky family had to spend about $9000 from their own pockets!
- You get your dream job without the dream pay: what will you do? If you take up your dream job, it automatically means losing out on a couple of hundred dollars per month during the beginning. Having an emergency fund from now on will be your lifesaver. You will be able to take up your dream job without the guilt of not earning as much. Making such decisions is more difficult when you have a family. An emergency fund will make sure that you family does well while you get to live your dream.Money is always tricky to manage. You can never have enough today, and that is the very reason you never think of saving for tomorrow. However, emergencies don’t wait for invitations. Having even a small amount of emergency cash to fall back on brings a sense of confidence and comfort that you must experience. Check out https://bayareatitleloans.com/ for ideas on how you can save money for any emergency.