Why You Should Start Your Emergency Fund Right Now

Today I want to share with you some common unexpected expenses, and why you need an emergency fund in order to deal with these. This is because more than likely we will not budget for these expenses, which leaves us left wondering where we will find the money to pay for them! No matter how financially prepared you think you are, life will always throw something unexpected your way!

 

  1. Medical, dental, and vision expenses
  2. Sick Pet
  3. Laptop breaks
  4. Car breaks down
  5. Need to purchase a new car
  6. Plumbing problem
  7. Electrical problem
  8. Clothes for a new job that requires you to dress up every day


  9. Get sick and you don’t get paid sick leave at work
  10. Mobile phone breaks
  11. Expenses for your kids extracurricular activities
  12. Washer/Dryer/Fridge/Dishwasher/Oven breaks down
  13. Destination Wedding for friend/relative
  14. Family emergency
  15. Gifts for baby shower, wedding shower, housewarming, etc.
  16. Flat tyre
  17. Fines e.g library fines, speeding ticket
  18. Electronics Replacement, eg. computers, phones, cameras
  19. Hospitality, eg. guests visiting, throwing a party, food
  20. Household supplies, eg. cleaning supplies
  21. Gardening expenses, eg. soil, seeds, fencing
  22. Furniture replacement
  23. You lose your job and you can’t find another one with the same rate of pay


  24. You (or your partner) unexpectedly get pregnant
  25. You find yourself with a debilitating illness
  26. Your hours are cut at work
  27. A friend or relative in crisis moves in with you for a while
  28. You’re evicted from your home
  29. An unexpected bill
  30. Your account becomes overdrawn

 

There are a number of ways you can prepare for unexpected expenses. One is to save more money. Set aside a small amount in your monthly budget for your emergency fund, and you’ll have no added stress when any of them pop up.
To create an emergency fund, open up a savings account make a commitment to put money in every month. You could even set up a standing order so your bank does it automatically.
An emergency fund is cash you have saved that you can dip into in an emergency. An emergency fund should be enough to pay all your most important bills for several months. Three months worth of your income is a good minimum to aim for, although the exact amount you need depends on your circumstances.

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