4 Reasons Why You Need an Emergency Fund

emergency fund

It’s not enough to save some money before spending anything; you should also save a portion of your salary to an emergency fund which is different from savings, of course.

Why do you need one, you ask? Here are the reasons:

Major medical and dental bills

You’ll never know when you’ll need a large sum of money to pay a hospital bill. Even if you’re healthy and young, a lot could happen and emerge. There are various possible culprits from unforeseen sicknesses to accidents. Not that I’m telling you to expect they’ll happen, but it’s better to have a fund for such events, so you won’t have to worry about where to get the money.

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You might have a medical or dental insurance, but there’s no certainty that you’ll pay nothing. Besides, some procedures and operations might not be covered by the insurance, which is why you’ll need an emergency fund.

Home repairs or appliance replacements

Because we can’t tell the future, we sure will be taken by surprise when our house demands immediate repairs. Whether it’s the water pipes or electrical wires, you’ll need to spend money to fix it.

There might be an appliance that needs replacements too, such as your oven, refrigerator, or juicer. Even if that’s not an expensive appliance, you’ll still have to spend a few bucks to replace it.

Tip: Before you replace any appliance, be sure to read reviews such as masticating juicer reviews to help you save money and time.

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emergency fund

Car repairs

Your car can’t be in its best condition at all times, which is why you have to add auto repairs to the reasons why you an emergency fund is needed. If you don’t have access to public transportation and you solely depend on your car, you have to make sure you can maintain it properly. But even if you drive safely and take good care of the car, accidents and unpredicted repairs might show out of the blue. Car repairs and replacements are mostly expensive, so it’s best to have an emergency fund instead of credit.

Unexpected travels

You can’t control time and other people’s lives. You might need to visit your hometown because of the death of a family member or go to a country for an emergency business meeting, and a last-minute plane ticket is costly. Instead of depending on your credit card, save money for sudden travels.

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How To Save More Effectively

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Contrary to popular belief, saving money is not that complicated.

All you really need to have is knowledge, as you learn how needs and wants are different; patience, as you learn how time and effort are used; and discipline, as you apply everything you’ve learned.

Even more so, you can save more effectively by:

Learning How To Do Things On Your Own

Be it repairing a water leak in your bedroom or fixing a broken lightbulb in your kitchen, learning how to do things on your own is one great way to save more effectively. You see, you won’t need to spend too much time just to find someone to do the job for you. You also see, you won’t need to spend too much effort just to hire someone to do the job for you. All you really need are the right tools and equipment for the project, along with how-to’s you can find online or what-to’s you can find at https://weldingchamps.com/best-welding-helmet/.

Learning How To Make Things On Your Own

Be it making your own lunch for your work or creating your own trinkets for your business, learning how to make things on your own is also a great way to save more efficiently. You see, you won’t need to spend too much on the materials you’ll be using. You also see, you won’t need to spend too high on the tools you’ll be using. All you really need are what you can find within reach, along with along with how-to’s you can find online or what-to’s you can also find online.

Indeed, saving money is not that complicated.

As mentioned before, all you really need to have is knowledge, as you learn how needs and wants are different; patience, as you learn how time and effort are used; and discipline, as you apply everything you’ve learned – all of which can be applied thoroughly as you learn how to do things on your own, as well as learn how to make things on your own.

How about you? How do you save more effectively? What traits should a person have to save more effectively? What learnings should a person know to save more effectively? Did you ever tried one of the learnings mentioned above? How did it go for you? How did it change your perspective on money? How did it change your perspective on saving money?

Do you know any other ways to save more effectively? Let us know in the comments section below!