Five Reasons to Build an Emergency Fund Now
You know the old saying, “Life is full of surprises.” It’s usually said jokingly after something unexpected and not necessarily welcome happens. But as with most sayings that become part of our collective psyche, it’s familiar because it’s also true. Life really is full of surprises and we’ve no clue that they’re about to arrive! Some are good—you find money in the pocket of an old suitcase—but some are bad, like the hurricanes, fires, and floods that uprooted and displaced so many families around the country in just the past few months.
We can’t control nature, as much as we’d like to think that we can, and we can’t always completely control our own lives. We get sick, lose jobs, fall on hard times, etc. Sadly, another old adage about “saving for a rainy day” has also fallen by the wayside. But in today’s topsy-turvy-turn-upside-down-on-a-dime world, it’s more important than ever to do just that. Create and maintain an emergency fund to take care of those inevitable “rainy days” that will affect the future of each one of us. Here are five of the most common…
1. Job Loss
We report to work each weekday, sometimes feeling energized and ready to tackle the world, and other times wishing we could find something more fulfilling or less demanding! We tend to take our jobs for granted, at least in the short-term, but when there’s a layoff or our CFO decides to “trim the fat,” we could lose them. It can and does happen all the time. Unemployment insurance does not go far and there’s no guarantee how long it’ll take to find something new. Um. Got any emergency funds?
2. Long-Term Illness
It can happen to us or our kids. We never plan on it, but it can tear apart a family’s finances in short order! Having several months’ worth of emergency funds could supplement the budget when you need it most.
3. Household Breakdowns
The washing machine dies. The heat stops working. The TV (gasp!) is hit with a power surge and fried! We all know the feeling, and when the only resource you’ve got for repair or replacement is the well-worn credit card in your wallet … well, most of us know that feeling too!
4. Natural Disaster
Those of us who’ve been around long enough know that natural disasters happen all the time. We become a little numb to images in the news showing of people wading through waist-high water, or perfectly nice homes that are now piles of twisted metal and rubble or nothing but burned out shells thanks to out-of-control massive wildfires. It’s heartbreaking and scary at the same time, because we’re all vulnerable in some way, and we know it. Will you have the money on-hand to survive until you get back on your feet?
Sure, you’ve got homeowner’s insurance, but your claim isn’t going to be settled overnight, and you’ll need a place to stay, possibly new clothes, food, heck, you’ll need just about everything! Life does go on … it won’t wait until you receive your claim check!
Don’t wait until life pushes you into a corner. All of these are compelling reasons to open an account that you can liquidate quickly in case of emergency. An emergency fund is your first defense against the tough times in life. Speak with one of the knowledgeable financial officers at Marine Federal Credit Union. We’ve been around, growing and evolving, for nearly 60 years with branches in North Carolina, South Carolina, and Virginia!
Federally insured by NCUA.