An emergency fund is a savings account set aside for unplanned expenses. I think it is very necessary because life in life anything can happen, and having an emergency fund can save one the stress of running helter skelter if such situation arises.
I started having some emergency funds when someone close to me was very ill and I did not have any spare money on me to assist the person. I didn't have enough savings at that time, I had to watch the person suffer from the illness till the person was able to raise money to visit the hospital. I don not want to go through that again, so I decided to I will have an emergency fund.
Having an emergency fund isn't easy, one has to be disciplined and consistent with it. I started by setting aside a small portion of my monthly income. It was difficult at first because there were always other things to spend money on. But I stayed disciplined and made saving a priority.
I also decided to open a separate savings account mainly for my emergency fund. This way, I wouldn't be tempted to use the money for other things. I also set up an automatic transfer from my checking account to my emergency fund account every month. This made saving easier because I didn't have to remember to do it manually.
I also reduced unnecessary expenses such as I eating outside and started cooking at home.
Having an emergency fund will definitely give one peace of mind. Knowing that if something unexpected happens, one has some funds to fall back on. It also reduces anxiety and allows one to focus on other aspects of life without having to worrying about money.
I would recommend everyone to have an emergency fund. Life is so unpredictable, it can throw surprises at us, and being financially prepared can make a huge difference. Start small if you have to, but be consistent. Over time, your savings will grow, and you'll feel more secured. Having an emergency fund is a smart and necessary step towards financial stability.
