Think you can get by living paycheck to paycheck? Think again. Emergencies by nature are serious situations that happen unexpectedly. Since you never know what financial costs are on the horizon, you must always be prepared.
Too many families and loved ones are negatively impacted when tragedy strikes and there is no money available to satisfy the immediate needs. Worse financial situations occur when lacking the funds to compensate for the situation at-hand. Thankfully, all this is preventable when you have built up for yourself a generous savings account.
Here are the most common reasons why everybody needs an emergency saving account:
Unexpected termination – Losing a job unexpectedly is one of the harshest realities to face. Your dependency on steady income is stripped from you. You are now at the mercy of a new job that may not fall into place as quickly as you anticipate. All your monthly bills and daily necessities add up quickly. With no way to pay these bills, you suffer further consequences like eviction and foreclosure, etc.
Medical emergency – Medical emergencies are among the most common reasons people fall into financial disaster. Unexpected health issues or injuries often cause added detriment by causing the person to lose time earning money at work. These types of situations severely impact the lives of those who are barely able to make ends meet as it is.
Car/home repairs – Perhaps your home or car has suffered damage not covered by an insurance company. When you must pay out of pocket to repair your home or automobile, you are depending on additional money that goes outside the bounds of your regular monthly income. Are you ready to front the costs of such emergency repairs?
These are just some of the many reasons good, hard-working individuals fall into severe debt and even bankruptcy. Overspending will often cause catastrophe for the unforeseen circumstances on the horizon. You can and should prevent such a dismal reality through creating and protecting your emergency savings account. There is help available to get you back on your feet no matter where you are in the debt cycle.