Nowadays, it has been harder and harder to save up for rainy days. Ironically, it's not necessarily because of the lack of income but it is also due to the accessibility of credit in this modern time. In the past, you have to painstakingly save up for any out of necessity purchase you might have. Now, even if you don't have the financial capacity for a purchase, you can easily do so with just one swipe. Because of this, saving up is not as easy as it once was. Money experts will tell you how important it is to have an emergency fund handy. This fund will help you cover the cost of any unexpected or urgent expense. This means you would have a safety net in case a crisis comes up and you need money right away. This also helps ward off unnecessary stress by giving you the peace of mind that you can face life's unexpected bumps. Start Small The important thing is you are able to start. You don't have to save a big amount right away. You can even start with as low as $10 a week. Think of the minute nonessential purchases you can give up to add to your emergency fund. Say for example, instead of having that weekly night out with friends, give it up for a spendless movie night at home. Even saving up by leaving your credit card at home can make a tremendous difference in cutting expenses and leaving room for savings. Even if you in the midst of paying off debt, the more important it is to have an emergency. While this may sound difficult, there are still ways you can save from your budget. Consider checking the services of a reputable debt relief company. Debt relief programs are designed for you to pay less than what you originally owe. Instead of just paying the minimum per month, these debt experts will negotiate with your creditors to pay off your debt at a lower amount for good. A good debt relief company will make sure your new monthly payments fit in your budget that will make room for other things like your emergency fund. When to Use Your Emergency Fund Unexpected Car and Home Repairs Home insurance and auto insurance help in covering the cost of more costly accidental repairs. However, for small to moderate damages that may not be covered by your policy, your emergency fund will come in handy. Medical Emergencies Again, although health insurance usually covers costs, anything needed upfront still requires you to shell out your own money. Some people even delay going to the doctor's office for the lack of insurance. Don't be one of them. Change of Career and Job Loss This is one of the major reasons why you need an emergency fund. Should you lose your job or change your career, you won't have to worry much. With a stable emergency fund, you will be able to cover your basic expenses and ongoing bills without the stress of thinking where to get the money. Ultimately, when deciding whether to use your emergency fund or not, consider the following questions: Is it unexpected? Is it urgent? Is it absolutely necessary? If you can, avoid using your emergency fund. Budget and save appropriately. The questions above will make sure you only use your guarded money wisely. Or else, when a bigger emergency comes, you might not be able to have enough. Sources: www.daveramsey.com/blog/quick-guide-to-your-emergency-fund http://www.facebook.com/curadebt www.youtube.com/watch?v=KL5kmdyW5xc
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