4 Emergencies You Should Always Have Money Saved For
Emergencies
Not knowing what to expect from the future can be daunting, but it could be much worse if you don’t have the finances to take care of things when something bad does happen.
Life is full of unexpected problems or risks, and there are several situations that might require some money in order to fix and get you on your way.
Here are just a few of the kinds of emergencies that you should try to save some money for when possible.
Job Loss
Although job loss can be devastating and depressing, the one silver lining it might have is in how you can calculate an emergency fund for it.
Unlike many other types of events that you don’t see coming, sudden job loss has a sort of recommended allowance that varies only based on what your job is.
Many people advise that you should have enough funds saved up to deal with up to six months of unemployment.
This money should cover all of the basics for you and any of your dependents.
Bail
Even if you are a law-abiding person who has never put a foot wrong, it is possible you could find yourself up on charges due to some kind of error or situation you were in the middle of but couldn’t foresee.
In these situations, you might need emergency funds to make bail and be released.
While the exact amounts can vary, talking to an experienced bail bond agent can help you navigate this process and get your life in order when the unexpected happens.
Home Repair
Major damage to your home is something you’ll need to take care of as soon as possible.
While you may have insurance that is meant to cover the bulk of these costs, you probably have a deductible you need to meet before a payout can happen.
For home repair emergencies, make sure that you at least have the deductible amount ready.
It is a good idea to include a bit extra for quick repairs to structural parts of the home if necessary.
Travel Woes
Seeing the world is a great way to relax and learn new things. However, disaster might strike while you are on vacation.
Being out of money when you might need it most is the last thing you want when you’re already out of your element.
If you’ve already planned the expenses for a trip, make sure you budget some money to pay for emergency costs such as quick transportation, extra days at a hotel, basic medical care, and the like.
While it is nice to receive outside help when an emergency occurs, the simple truth is that you may be on your own.
To mitigate the risks to you and your loved ones, you can take a look at some of the situations above.
How much money you should have saved for each scenario is variable, but building up a small emergencies fund whenever you have spare cash is an important first step.
Category: Financial Planning
