3 Reasons Why You Should Have An Emergency Fund

0
492

Not everyone is prepared for a rainy day. When an unexpected expense occurs, specific individuals get caught without any financial means to solve the problem. Individuals must plan for unforeseen events. An emergency fund is critical for you and your family’s financial security.

How Much Should You Save?

This amount will differ from person to person. An excellent way to start is to make a list of your monthly expenses. Try to list your fixed costs separately from your variable expenses. Even if you can only save a minimal amount, a little bit is better than nothing at all.

Add a fixed amount to your list of expenses so that you can put that towards your emergency fund each month. Open a separate account so that you don’t have regular access to those savings. Pay yourself each month without fail, and start to build your rainy day account.

Being Self-Employed

Small business owners who rely on securing contracts can face periods when a particular job has ended, and the next deal is not yet finalized equally no income. In these situations, having an emergency fund can tide you over and eliminate the need for you to rack up unnecessary debt on your credit cards.

Losing Your Job

In the unfortunate event of the loss of a job, specific individuals can claim from unemployment funds. While this helps with settling monthly expenses, often, the amount does not cover an entire family’s needs.

 Having an emergency fund can reduce the pressure and ensure that you don’t leave any bills unpaid. When you pay your debts on time, you will not be charged with any unnecessary late payment fines.

Legal Fees

Accidents are not planned events. A car accident can have life-changing consequences for both you and the people who depend on you. If you are involved in an accident, and it was the result of negligence on another person’s part, you can proceed with a legal case.

Without enlisting skilled professionals to help you navigate the process, likely, the injured party might not be successful in building a solid legal case due to a lack of knowledge on how to proceed.

Enlisting the services of a professional legal team can be a costly exercise. Diamond & Diamond believe that when an individual is involved in a traumatic accident, the last thing they want to manage is gathering evidence to build a case.

With a wealth of experience and knowledge in personal injury cases, professional legal firms can make sure that a person who suffers as a result of an accident is fairly compensated.

Be Smart and Save!

We often overlook the need to have funds set aside for situations that arise without pre-warning. Building a safety net can take time, but you’ll be glad you made provisions when something unfortunate happens.

LEAVE A REPLY

Please enter your comment!
Please enter your name here