A1 Credit Experts
3 Reasons You Should Always Have an Emergency Fund
Life can be very unpredictable, and because of this it is important to always make sure that you have some extra money saved – an emergency fund. With so many expenses yearly, many people can easily forget the importance of having an emergency fund, which can have consequences if an unexpected cost comes about. Without an emergency fund, you will automatically be forced to take a loan up, or rack up a credit card bill that you may not be able to pay in full, leading to an immense amount of interest. Your emergency fund can be small or large depending on your income, but ultimately, some money saved is better than none. Here are a few reasons why you should definitely consider putting money away for an emergency fund:
- Home repairs. If you are a homeowner, you know first-hand how quickly something can go wrong – whether you need emergency roof repair, an appliance replacement or to deal with plumbing or electricity. Whatever the cost may be, it can add up fast, so it is best to have some padding.
- Car repairs. Fixing a vehicle can become very costly, especially if it is an older model that requires more attention and more part replacements. It is also important to have money aside for any vehicle-related emergency, such as a car accident.
- Job loss. Lastly, during these unprecedented times, it is important to have as much money aside as possible in case of any unexpected layoffs. If you will no longer be receiving a regular paycheck for the time being, having extra padding will allow you enough time to look for a new position while you are on unemployment.
