4 Times an Emergency Fund can Save you

Starting an emergency fund is easier said than done. Even though you may have been putting this off for quite some time, nothing is stopping you from making a change in the future.

Here are three times when you will be glad that you have an emergency fund:

1. Job loss. If you find yourself out of a job and with no income, you will need money from somewhere to survive. Fortunately, if you have an emergency fund you will be okay for the time being. It is your hopes that you have enough money to get by until you find another job.

2. Medical bills. Even if you have health insurance, there is a chance you could get stuck with a medical or dental bill. If this happens, you will feel pressured to pay the bill as soon as possible. With an emergency fund, you won’t have to worry about making small payments, month after month. Instead, it is likely that you can pay the entire amount, thus putting this behind you once and for all.

3. Home repair. Do you have a leaky roof? What about a broken furnace or air conditioner? How about an electrical system that is a fire hazard? Home repairs can be expensive, with some setting you back $10k or more. If you don’t have an emergency fund, you may have to live with a serious problem for longer than you would like.

4. Automotive repair. Unexpected repairs come and go. Expect older vehicles with higher mileage to cause more issues.

Even if you don’t have a lot of money in your emergency fund, anything is better than nothing. Over time, you can add to it here and there, hoping that you never face an emergency that calls for a withdrawal.