The Finance Blogger


Biggest financial Mistakes – No Emergency Savings

Biggest financial Mistakes No Emergency Savings as a financial mistake ranks up there as one of the most important issues that many people seem to ignore. |The biggest financial mistakes that people make can jeopardize their quality of life for many years. This mistake can cause a world of hurt for both you and your family. Including losing your home, your possessions and even putting you out on the street. Most people are over confident. They believe it will never happen to them and then it does. We cannot predict when, but we are pretty sure that a financial  emergency will occur sometime in your life time. Saving for an emergency is a financial security blanket. It will give you the time to deal with the issue that is causing the problem in the first place and ensure that you can refocus on finding a job etc.

Biggest financial Mistakes  – Job Loss

Are living pay check to pay check and counting on your job to continue unabated? This is probably a bad assumption. Most people change jobs at least 5 or 6 times in their lives. Sometimes they do this by choice. While in others they are either laid off, fired or the company goes bankrupt. This is the most critical time when you need to have an emergency savings to get you  through the time with no income. Don’t count on your company, they are loyal to the bottom line only and will lay you off in a second if they need to.

Health Issues

Not everyone has health benefits and sometimes you cannot work while you are sick or you need medical costs to be covered. This is a critical time for when you need to have an emergency fund set up. An emergency fund will pay for some of the medical bills or just put food on the table while you recover from whatever medical situation you are dealing with.

Emergencies

A new roof, repairs to the car, replace appliances and many more small emergencies that crop up from time to time. These are the things that emergency funds are needed for. The important thing is to have a fund and then once you use it, top it up again so that the money is there when you will need it again. Some people would rather protect their emergency fund at all costs.

They avoid entering into debt or buying items they would like to have just to ensure that their emergency fund stays intact. This is financial survival and it impacts your life and that of your family.

Rest assured that emergencies will always come along and life can be a whole lot easier if you have the funds to deal with this emergency. For more financial mistakes that we all make from time to time, click here.

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