4 Reasons Why You Need Emergency Funds


2. Major emergency health expenses 

There is no question that health is wealth. However, we never know when health can fail us. In fact, even the healthiest of people never have a guarantee that they will not have medical emergencies with major bills to cover. In this light, you can only prepare yourself for any eventuality. Some people have medical insurance; but it is common knowledge that this insurance will not cater to every little thing. There are out-of-pocket expenses that you must pay to enjoy health services. If you do not have medical insurance, the burden is even bigger for you.

Every single day, people suffer all manner of sicknesses and accidents that require funds. If you have emergency funds, this burden will not be as heavy for you. It will assist you in avoiding unnecessary debt. In some cases, some people take money from their retirement funds and this can set you back in this regard. Therefore, having money in reserve is a brilliant idea. It is unwise to wait until it is too late to start saving for medical emergencies; the sooner the better. Keep in mind that when you are unwell, financial problems can add to your sickness; and you want to ward off stress as much as possible to recover.

3. Unforeseen car repairs

Cars are certainly not perfect; they can break down at any time. What many people do not realize is that car repairs can take up a significant amount of money; especially when the cars are not as new as they used to be. In this respect, using your credit card every time you go for repairs will work against you.

Emergency Fund

Emergency Fund

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