Have You Got an ‘Emergency Fund’?
In these times of uncertainty perhaps starting an emergency fund could be a good idea. Typically an emergency fund is a personal budget that you put aside as a financial safety net for future unexpected expenses.
I started one a few years ago when my daughter needed some medical help on her spine after she fell off a horse. Unfortunately the private healthcare package didn’t cover all the specialist treatment so I needed to start putting money aside for it.
The experts recommend somewhere in the region of three to six months’ of living expenses to create a secure financial safety net but as we have seen with the recent COVID pandemic it may be prudent to stretch this to a year’s worth and with my daughters treatment it is still ongoing 2 years later!
The reason to have an emergency fund is pretty straightforward in that you just don’t know what’s going to happen from suddenly losing your job, an emergency operation etc. Many so-called emergencies repairing your boiler, replacing your washing machine or fixing your car are not true emergencies. These type of things are expected and you know these things will occur at some point.
Who’s got one or thought about it?
I don’t have one but having it would be great because nobody knows what tomorrow will bring
Sorry about your daughter, hope she recovers fully. Good idea to have such a fund for that needed security. We usually have insurance and medical aid but these are sometimes inadequate and an emergency fund becomes necessary.
Emergency fund is very important and useful.no one knows what will happen tomorrow or even after one hour later in the near future. So by having an emergency fund aside can help us to solve some unexpected problems .
I should know.I am struggling to build that.It is so true.No-one knows what will happen in the long run even if you plan and live your life in an organized way.I definitely do not ft ink that any of us saw this coming.So this gives me motivation to get started.
Sorry about your daughter, wishing her a speedy recovery
I have always thought about having an emergency fund, especially after experiencing this covid-19 pandemic, the need for it can not be overemphasize
I have not yet started one but I realize it’s neces important to note that it’s now a necessity to have an emergency fund for everyone. This covid19 pandemic has created a big impact in everybody’s life, let it positive or negative.
Thank you for bringing the topic about emergency fund!
When you mentioned it, I took it upon myself to tell a few friends about it and has sparked a discussion here at my work place. We have been discussing about it with colleagues about how helpful it can come to one’s rescue. I think an emergency fund is more less like an insurance policy, if I have an insurance policy, it protects me against unforeseen uncertainties like sickness, accidents and so on. However, insurance policies cover certain specific risks as stipulated within that particular policy. Therefore, in this particular case, an emergency fund will cover any risks that befalls the holder that an insurance policy may not be able to cover. Thank you very much, you have made our day here.