Emergencies can seem like the end of the world. There is the initial stress of the emergency itself, but then you have the aftereffect caused by the financial burden the emergency has caused. If you have to use a credit card or take out a loan, the debt could follow you for years to come.
Image credit: Grant Cochrane | FreeDigitalPhotos.net
Having an emergency fund can help to reduce the stress and relieve the financial sorrows that typically follow.
Auto repairs
Emergency auto repairs can be extremely costly. Windshield repairs are one of the most common. All-West Glass Ltd., an Edmonton windshield repair company, explains that the windshield’s safety features are compromised when it becomes cracked or damaged.
This makes it essential that repairs are performed quickly. Same-day service can be expensive, so having an emergency fund will help make getting the repairs completed easier.
Home repairs
One example of home damage is flooding. Even if you don’t live in a flood zone, you can still have water mains and sewer lines in your home break. Most homeowner’s insurance does not cover flooding. Even if your policy does cover flooding, you may be responsible for the deductible or you may have to pay and wait to be reimbursed.
Travel expenses
If you have family or friends that live far away, having to suddenly travel for a family emergency can cost a lot of money. A last-minute flight will cost more than it would if the flight were planned ahead. It’s also good to have in case you need to get gas in your vehicle that goes beyond your normal gas budget or pay a toll that you were not expecting.
Hospitalization
Many people have insurance that will cover the majority of their hospital bill. Many insurance policies, however, require a person pay a deductible and co-pay. This may end up being thousands of dollars. If your hospitalization takes you away from work, that will add up to even more money lost.
Most emergencies, like those above, cannot be avoided. The financial stress that comes with it can. Making sure you have an emergency fund available is not only a good idea, it is essential.
It will not only help to make the emergency seem less stressful, but it will also help to ensure you do not have a burden in future months and years. The peace of mind is worth the effort to save the money ahead of time.
Savannah Coulsen
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