Most people know that they should put money away for emergencies. However, as much as people might know they should, many fail to actually do so. In reality, people may not realize the types of situations which could call for needing money fast. Going over these possibilities in your head may help you become better motivated to actually put money away in emergency savings, and avoid finding yourself in a sticky financial situation. 2022 is no exception.
There’s more risk than ever of finding yourself in need of emergency funds. Here are some of the most likely reasons why you would need to access money fast in 2022.
The world hasn’t had its shortage of natural disasters recently. You never know when your roof could cave in due to a tree falling on it. Home repairs don’t just happen as a result of natural disasters either. You could find yourself with a burst pipe or in need of new flooring. You never know what could happen in your home if you’re a homeowner. So, it’s important that you can take care of these home repairs quickly. Failing to fix repairs soon after they occur could lead to more problems and more expensive issues down the road.
If there’s anything that COVID-19 taught us it’s that our jobs could be eradicated overnight. Despite receiving several COVID relief payments, many families found themselves unable to provide for themselves, and in a serious financial situation as a result of sudden job loss. Financial experts recommend having at least three months salary put aside to be able to cover your basic expenses and bills until you find a new job. Even though three months salary may seem like a lot, the peace of mind that it will give you is well worth putting your money away every month.
Medical emergencies can cost a pretty penny even if you have insurance. If you find yourself having to receive surgery or any other sort of hospitalization, you could find yourself in serious debt. Many people have to make the impossible choice of choosing their budget over their health. Having emergency savings set aside means that you can have peace of Mind knowing that you can care for your family in the event of a medical emergency without having to worry about covering the bill. A well-rounded emergency fund should take into account not only the medical costs themselves but also any time you’ll need to take off from work. This is especially important if you have children and not only yourself to look after.
These are just a few examples of potential reasons why you may need emergency savings. By setting up a savings plan for yourself, and sticking to it, you should put away a nice amount of savings that give you and your family peace of mind for any potential emergencies.