Are living paycheck to paycheck 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 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.
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 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.
A new roof, repairs to the car, replacing 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 funds 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.
Bad debt will not just disappear. You have to take some specific action in your…
When couples retire together there are many issues they have to figure out how to…
Many retirees assume that life will be grand after they retire. They will have lots…
Consumers love to talk about the stocks that have increased in value exponentially. Very few…
Before we answer the question, how do I avoid probate, we should really define what…
Credit utilization is a relatively new term that was initiated because many consumers were being…