Why Your Family Needs an Emergency Fund
Do you have a little nest egg tucked away to deal with those unexpected emergencies every family experiences from time to time? If not, it’s time to start saving!
You might think that you can get by perfectly fine without having an emergency fund, and you might be thinking that saving for an emergency fund just means that you’ll have less to spend right now, but you know what? When disaster strikes and the boiler breaks down, or the dog needs an operation, you really will be glad you have one.
Not convinced? Here are some very real reasons your family should have an emergency fund in place:
There are few jobs that are guaranteed for life now. Anyone of us could conceivably lose our jobs or whatever sources of income have, at a moment’s notice, and when that happens, it won’t be long before the money runs out.
When you lose your job, it’s not the same as being a bit short at the end of the month when a quick loan from new horizons will see you right until payday. Unless you’re lucky enough to find a new job quickly, you’ll always be short, even if you’re able to claim benefits and that means you’ll have to cut right back on entertainment, branded foods, and days out with the kids in order to pay the most basic bills. Unless you have an emergency fund covering between 6-12 months worth of expenses.
It might take you a while to build up a fund of this size, but it is so worth making an effort do so for the security of your family.
If you have access to a good NHS dentist, you are indeed lucky because more and more people are finding it impossible to access NHS dentists at all. Even if you do have access to the NHS service, if you aren’t in one of the exempt groups, you will have to pay something towards your treatment, and if you have a major dental emergency on your hands, you may need to pay hundreds, if not thousands of pounds to have your teeth sorted out. If you don’t have that kind of money available to you in an emergency fund, you’ll either have to suffer until you can find it, get into debt or get behind your bills – none of which will be good for you or your family!
If you have one or more family pets, having an emergency fund might just save their life and yours, so to speak one day, especially if you don’t currently have pet insurance (in fact some people choose to save money for future vet’s bills instead of paying for an insurance policy due to the difficulty they’ve had in getting a pay-out when needed). Vet’s bills can easily run into the thousands of pounds if your animal is seriously ill and having to put a pet to sleep because you can’t afford to pay for them is nothing short of heartbreaking for the whole family. So, don’t let it happen.
You might think that, if your car breaks down, you could always put it on the credit card, but have you ever noticed how bad things come in threes? First, it’s the car, then it’s the fridge, then the washing machine gives up the ghost. So, sure, you might be able to put it on the credit card, but what happens if something else goes, wrong, and then something else? You could end up drowning in debt, and even if that doesn’t happen, you will end up having to pay a lot of interest on what could be a sizeable car repair bill. Whereas, if you had an emergency fund, you wouldn’t have to strain your finances at all.
You can’t leave your house with a leaking roof or a broken window if the kids have been getting a bit rowdy with a football. It’s not safe, and it could cause the quality of your home to be compromised too. As you will know, hiring tradesmen and buying building materials doesn’t come cheap and a setback like this could have a knock on effect on your bank account for weeks, even months to come if you aren’t prepared with a handy emergency fund to get you out of a tight spot.
The worst probably won’t happen, and I certainly hope it doesn’t, but if it does, it pays to be prepared with a healthy emergency fund to see you through.