Five Reasons To Start An Emergency Fund

 How often do emergencies happen? Hopefully, not too often in your life; no one likes to consider bad scenarios happening to them. If emergencies happen and you haven't prepared yourself for it, you’re going to be left in the lurch - and you don't want that to be the case. People don't often prepare for the worst, because no one wants to think about the worst happening. 

However, emergencies do happen and they happen when you least expect it. The best thing that you can do is be financially ready - in any scenario. If there's a house fire, you want to be able to afford the repairs and rent elsewhere. If there is a flood, you need to know you can replace the electrics in your house when they’re affected by it. The fallout of not being prepared for an emergency is much worse than you could imagine, which is why you need to start setting aside some emergency savings. So, with that in mind, here are five reasons you should consider starting your pot today.

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  1. The Boiler Breaks. Wherever you are in the world, if you have a boiler, you need it to work. Hot water is a must for washing you, your clothes and your dishes, and you need to have adequate heating to keep you and the kids warm, too. If the boiler breaks, you can compare Boxt boiler prices to get the right one, but if your emergency fund pot is empty, what can you do? You need to be able to replace a boiler at short notice, so it’s our number one reason to have emergency funds.

  2. You’ve Lost Your Job. While it’s nice to rely on your income, you can always be caught unawares if you lose your job because of redundancy. The world is in turmoil, and without your job, you’re going to struggle to keep your roof over your head and your bills paid. You need an emergency backup.

  3. You’ve Been In Hospital. It’s rare for anyone to plan to be in hospital. If you have had to have an operation and you need medical care, you need to pay for it in some places in the world. If you are lucky enough not to pay for medical care, but you lose a tooth and you need dental care? Well, you need an emergency fund for that.

  4. You’re Self-Employed. It’s a dream to work for yourself, but if you don't get enough contracts you could find yourself falling short. Your emergency fund could cover you in those cases. Self-employment is something everyone aspires to do, but if you don't cover your expenses with a six-month back up, you’re going to lose a lot more than just a job.

  5. You Need to Move - Now. Usually, a move is planned for months in advance. If you ensure that you have expenses to cover you, you can move to a new home if you are put in a position to - like a fire or flood that requires you to recover all of your things. The post-move cleanup can be expensive!

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