If there’s one thing that COVID showed us, it is that anything can happen at any time. And while we may not be able to control whether worldwide pandemics hit, or any other unforeseen circumstances, we can protect ourselves as much as possible. An emergency fund is there to serve as a financial cushion providing peace of mind in the face of an emergency. Here are some of the top reasons why having an emergency fund in 2023 is more important than ever.
Although there are plenty of perks that come along with being a homeowner, there are also plenty of responsibilities and challenges. If your air conditioner needs to be repaired, or you have a leaky roof, you can’t call your landlord. It’s up to you to take care of the problem because you are the landlord!
Unfortunately, home repairs are one of those things that should never be left unresolved. The longer you let a problem persist, the more expensive it could be in the future to repair, as the worst it could get. That’s why having an emergency fund on hand is critical to ensure you can solve issues swiftly.
One of the biggest causes of stress is anticipating big expenses. We often find ourselves wondering how we would handle the situation if it were to come our way. Having an emergency fund on hand means we have the comfort of knowing that will be taken care of without having to rely on credit cards. It allows you to approach life with greater confidence and resilience since you know you’ll be well looked after even in an emergency
Regardless of whether you have health insurance or not, health emergencies will still require you to pay a certain amount of money out of pocket. Unfortunately, many people aren’t prepared for how expensive medical bills are, and as such can find themselves in crippling debt.
Rather than letting this crude surprise happen to you, it’s best to set some money aside so you know you’re taken care of if you or one of your family members gets ill or injured.
Sudden Job Loss
As much as you might feel comfortable in your current position, the truth is that you never know what can happen in the employment world. Your business could go under, or you could even find yourself being replaced by someone unexpectedly.
Usually, these kinds of circumstances are totally out of the blue and don’t give you much time to plan for. That’s why financial experts recommend you have at least three months of salary put aside to ensure you’re covered while looking for new employment.