We live in an uncertain world where anything can happen unexpectedly. Health problems may arise, layoffs can happen overnight, gas might run out while cooking, and bills from nowhere appear, leaving you stuck and stranded because you didn't prepare and plan for them.
While we keep spending and enjoying ourselves, we ought to also plan for the future because no one knows what may happen in the next hour or days. For us not to be caught off guard, we are introduced to an emergency fund. As the name implies, it's a fund set aside for emergencies, so we aren't bothered too much.
Lack of money can be strenuous on its own and it's why many people do the unimaginable because of the issue at hand at that moment. Imagine being in a financial crisis, and you need money to sort things out; you've gone around seeking financial help, but no one can help. What do you do? How do you come out of such a dilemma? It's not a good thing at all. I know how it feels and I don't think I want to be met with such again.
This is why I take an emergency fund so seriously to avoid unnecessary heartbreak, disappointment and even pain. Emergency fund, for me, has saved me a lot of times because I plan ahead, and so, when unexpected responsibilities show up, I am not afraid but would easily take out money to sort things out.
This is why I take my finances seriously. I have my savings set aside while also saving for emergency on the other hand. Many times, I wouldn't want to constantly run around begging for help from people, but to ensure I am in good hands for myself by setting aside a certain amount once money reaches my hand. Life happens, and it's always relieving to have some funds to save you when the need arises.
Imagine being laid off from work without being notified. For someone who has been stashing away funds, it wouldn't be a difficult one because they have successfully planned ahead and never been caught off guard, and they would still be able to survive for a few months until they could get another job. At least for an emergency fund, it's important to set aside more than 4-6 months to keep one afloat in case something of such happens.
Another thing about an emergency fund is that it can also be a passive income to add more interest while sitting in one's account. This is why it’s inadvisable to lock up an emergency fund because one might need it anytime. It's different from short-term or long-term savings, where you already know what the purpose is.
Emergency funds have really helped me survive with food and also, when it comes to family coming around for different billings and this year hasn't been a bother for us as we'd prepared for this so we aren't tensed unnecessarily because when it comes to money and responsibilities, you wouldn't want to be angered anyhow.
Here is the contest link to participate, too.
Image Credit to Meta AI
Posted Using INLEO
Emergency fund is important for everyone but very few of are actually concerned about it. When we face trouble we can understand it otherwise it can disrupt the original plan of our regular life.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating to @indiaunited. We share more than 100 % of the curation rewards with the delegators in the form of IUC tokens. HP delegators and IUC token holders also get upto 20% additional vote weight.
Here are some handy links for delegations: 100HP, 250HP, 500HP, 1000HP.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
So many out there didn't get to know about this until later on life . I thought savings was good until I stumbled on a video that expressly talked about emergency funds and that's how I learnt.
Financial wisdom is key