Most of us have heard now and then that we should always have something stored away in savings. Although this is ingrained in our minds, we’re often not clear about what it’s for.
That may be the main reason so many people don’t put money away: They’re not convinced. Many people don’t realize the importance of having money in savings until it’s too late; they wait for a disaster to strike rather than plan ahead.
Don’t be one of the people who waits for something to happen, and lacks the money necessary to handle it when misfortune strikes. Here are some of the most common events and necessities that your family could need emergency savings for.
You never know when a pipe may burst and flood your basement. Or a massive storm knocks over a tree outside your home and breaks your windows. Since many emergencies are outside of your control, the best defense you can have is to have the money to be able to order the repairs immediately.
Owning your home is something that many families strive for. However, along with the added freedom and mounting equity, comes the responsibility of having to handle all the repairs yourself. Unlike a rental, where you can summon your landlord to fix the issue, you have to manage everything.
Having kids means you’ll be putting Band-aids on a lot of bumps and bruises over the years. Children often get injured or catch whatever bug is floating around the school.
It’s crucial to have the funds to take care of any pressing issues that require medical attention for their sake. Even if you have insurance, you’ll still have costs to cover over and above whatever your insurance will pay.
When one of your family members gets ill or injured, the last thing that you want to have to worry about is how to pay for it.
Cars can be finicky and unpredictable. Even new vehicles can break down when you least expect, and it’s not often a repair that shows up with a low price tag. Car repairs typically start at around two hundred dollars, and can easily climb upwards of thousands.
The panic when you don’t have enough money to pay for a mechanical repair, on top of losing your mode of transportation, creates a tremendous amount of pressure. Do yourself a favor and make sure you always have enough cash on hand to pay for car repairs right away.
Last Minute Travel
Most of us live far from at least some of our family members these days. You never know when someone in your family will fall ill, or for some other unexpected reason you’ll be required to travel a distance at the last minute.
Having to purchase plane tickets the same day or the night before often runs three to four times the regular fare. Having enough in savings to pay for it out of pocket is much better than running up your credit debt.