I’ve been in so many situations that warrants me to spend some money that I never planned. It could be an accident or anything. This has happened to me so many times by making me a scape goat and that was when I realized that emergency fund is important.
I know we all have things we need money for and sometimes we may not earn enough money for ourselves and we won’t be able to save too but out of the little we earn, we should be able to set some money aside for emergency.
What is an emergency fund?
An emergency fund is a fund that is kept aside for unexpected events. Anything can happen. You may step out of your house and hit your leg on something, if there is no emergency fund, something else may happen.
There are times when some opportunities come unexpectedly but we have to pay some amount of money for it. Without the money, the opportunity is gone. I’m sure you must have experienced such things like this. This is why emergency fund is needed.
How do I save up my emergency fund?
Firstly, out of the little I have, I still make sure that I save something. I always split my earnings into two.
I save a part as my emergency fund but inside of it, I alway save some future funds too.
Also, I spend half of my earnings. It is mostly not enough because there are months when things may get very expensive and all.
This may be very hard for beginners mostly because they may not be used to it but when you try at first but when you continue it that way, it will become easy for you and you will get used to it as time goes on.
Why is emergency fund important?
Emergency fund is important because there is no way we are not going to have some unexpected expenses that come our way and the only way to solve that problem at that moment is by making some of the emergency funds that we have saved just bring us out of that situation.
We never can tell what is gonna happen any moment from now, so it is advisable for you to have some funds for emergency because emergency funds saves life and also saves us from embarrassment.
