The average person doesn’t have the insider knowledge to know when a financial crisis is coming. Between the recession of 2008 and the global pandemic that shut the world down for over two years, few of us have gotten out unscathed by financial hardships. Whether you lost your job, had a medical emergency, or your car is in the shop, there’s always going to be something that straps your already tight budget.
While there are many ways to find money when you really need it, including express loans available online, the best way to prepare is by growing your own emergency fund. Creating a dedicated savings plan that can be used for unexpected expenses can give you more than just financial peace of mind. In this article, we will take a closer look at a few solid reasons you should be starting your emergency fund today.
Job Loss
The job markets have experienced an unprecedented shift since the pandemic, including a flood of resignations and work-from-home compromises. As a result of the shift to at-home working, many companies have been forced to reorganize, meaning many people have lost their positions permanently. When you experience an unexpected job loss, it can be financially devastating. Less than 40% of people in Canada. The loss of a household income can be more effectively managed when you have some money put away in your emergency fund.
Health Emergency
Millions of people across the country live without medical insurance. This means that a simple illness or injury can literally bankrupt many people. If you get sick and need medications or are injured and need treatment, an emergency fund can help you manage your medical bills. You never know when you may have a medical emergency like a cracked tooth, broken eyeglasses, or a child with a broken bone from a cycling fall. Setting aside a bit of saving for those types of medical emergencies can make an emotional and painful time more manageable.
Family Emergency
Many families are stretched across the country and don’t get to see each other in person often unless there is a holiday or a family emergency. If someone in your family is ill or involved in some crisis, you may need to travel unexpectedly, or a family member may need emergency financial help. When you work to build an emergency fund, you are making your family and the connection you share a priority,
Peace of Mind
In the stressful modern world, it’s important to establish a life that has a good balance between family, career, and self-care. Creating and building an emergency fund is one of the best ways to get your worries off your finances. You can sleep well at night knowing that emergencies will be handled if they come.
If you want to build your emergency fund, you can sell your personal items, pick up some freelancing gigs, or complete online surveys. Wherever you find the money, building your emergency fund should be a priority for your future.