Saving for the Unexpected: The Importance of an Emergency Fund

If you’ve never been told that you should save your money, we’ll say it again: save money. Every person who commits to saving money may have different reasons why they want to save their money. Some people save their money for future purchases like a big home, while others save money for those unexpected situations. Here are a few reasons why you may want to start working on saving your money today:

Medical expenses and more

From a car accident that leaves you in the hospital to medical emergencies that you never expected, having money in your savings account can help to ensure you can afford to take care of you and yours, no matter what. While you may have great insurance and don’t have to worry about things like auto body estimating for your car, you may have to cover some things in the meantime while insurance kicks in, so it’s best to have the money in your bank account so that you can get the medical attention you deserve.

Losing your job

While most of us didn’t think we’d lose our long-term jobs that we had held for years, the last couple of years have shown us that the world is changing and job expectations are different than they’ve been before. People who worked for years at a business were laid off, and many people have realized that the demands of the market are different than they were before.

While you may be cushier in your current position, setting aside money in the event of getting fired won’t hurt. Ever. It’s best to have that money should you need to find a new job and want to do so in a relaxed and non-hurried way.

You have big goals for your future

Aside from saving money for an emergency fund, which is something everyone should have, you also want to save money because you have big dreams for your future. Maybe you want to start a family and own a house, or maybe you want to move abroad and travel a lot. Either way, setting up a savings account that helps your money grow is something that can set you up for the success that you want in the future.

You want to be prepared for ANYTHING

If you had told any of us that there would be a pandemic that would shut down so many businesses and things as we know them, we probably wouldn’t have believed you. With this in mind, we know to work hard to be prepared for anything. At least, we should. Savings for an emergency fund now have a different connotation to them than they used to.

The unexpected has proven itself to be a possibility, so now it’s time to work with our financial advisors to be prepared in case of anything from a pandemic to a zombie apocalypse—maybe?  Higher interest rates, inflation, etc

Higher interest rates, inflation, etc

The current state of the economy isn’t appealing in many ways. There are higher interest rates, and inflation is causing prices to skyrocket, making it difficult for anyone who hasn’t gotten a substantial raise in the last few years. With the way that the economy is right now if you haven’t saved a lot recently, you may now see the importance of saving an emergency fund for the future. Even if you start small, saving money today can help set you up for a safer tomorrow.

You could use an app on your phone that allows you to easily transfer from your paycheck every couple of weeks, making it easy. 

In Conclusion

While living in a panic about what could happen in a future that hasn’t yet come upon us isn’t something that we should do, being prepared can bring some peace of mind. Instead of hoping that you will make it through any emergency, set yourself up for success by starting to set aside money today.