The best way to go about forming a financial security blanket is to open a savings account and place money into it on a weekly basis. Every time you receive a paycheck, you can put a certain amount of money away and pretend as if it does not exist until an emergency arises. A small amount of cash put away every week can quickly turn into hundreds and thousands of dollars. The following are five reasons why your family needs emergency funds:
Emergency Auto Repairs
Whether you have a brand new car or a used car, you will never know when something is going to go wrong with your vehicle. The emergency might be something simple like a blown tire or something more serious like a blown head gasket. Having money in a savings account for such times alleviates stress from having to go to family and friends for help. You can use the money in your account to make the repairs immediately. Then you can use your newly repaired vehicle to make more money to replace what you borrowed from one of your savings accounts Your life will never stop and there will be no worries about interest rates or finance charges. You can take your time repaying yourself.
Vacations and Shopping
Every family deserves to take a vacation from time to time. Additionally, every hard working person deserves to have the freedom to splurge and buy things that are not necessities. Although a vacation is not an emergency, it definitely is something that can give your family a release from the stresses of every day life. With an emergency savings account, your family can plan a trip once a year and have fun every week putting money toward it.
If you are a homeowner, you probably want to accumulate nice furniture. You might also wish to do some work on the overall appearance of your home. An emergency bank account is the perfect place to borrow the funds for your home renovations. After saving for a few years, you can have that beautiful porch you always wanted. You can paint your home in some beautiful vibrant colours to bring more life to your dwelling. Additionally, you will be able to afford luxurious furniture and electronics that will impress your visitors. You will not have to apply for a credit card or account. You can simply borrow from your emergency fund and carry the merchandise home.
Another great reason to have an emergency fund is sickness. There may be a time that you become ill and are not able to work. An emergency fund can help you to survive until you are well and able to get back to work. It can also assist in paying bills until you receive disability.
With the economy so bad these days, you always want to have a cushion in case you lose your job. Whether your job fires you or lays you off, you will still be responsible for paying your bills. Having an emergency fund will assist in taking care of those bills until you get back on your feet.
The most important reason to have an emergency fund is to eliminate worry and sadness. Life is very difficult even without financial problems. Building yourself a shield can help you to live life comfortably.