Emergency Funds

If a crisis were to occur here and now, would you have the means to support yourself financially?

With life comes unforeseen occurrences and unparalleled events. During unprecedented times, some may find themselves at a local loan agency or borrowing cash from beloved family members. To avoid such situations, you may consider taking the necessary steps to ensure your finances are steady. This may prompt you to create an emergency fund. 

An emergency fund is an easily attainable source of assets to aid one during a financial crisis such as the loss of employment, a chronic ailment, or a major restoration of their car or home.

Despite a growing economy, the average American family has less than $1,000 in their emergency fund.

Having an emergency fund is vital because it assists individuals who are anxious about how they would pay for unpredicted expenses.

Brekeese Pierce, a political science major at The University of Alabama, believes having an emergency fund is of great importance during uncertain times.

“Having an emergency fund is critical because we never know when an emergency may arise or when our circumstances may change. Life can be unpredictable at times and it is imperative to be prepared financially first and foremost because money is what we use to attain the necessities that we use.”

To facilitate a successful emergency fund, you must only withdraw from it during a dire calamity. It wouldn’t be wise for you to extract cash from an emergency fund to purchase frivolous items such as movie tickets, playing cards, and electronics.

If managed wisely, an emergency fund can be beneficial in times of adversity.

Tarkesia Blakely, a biology pre-medical major at Missouri State University, has an emergency fund account. She saves vigorously and is confident that having an emergency fund is useful during desperate times.

Blakely stated, “I believe having an emergency fund is extremely beneficial you would be properly prepared to assess the situation when times are tough.”

Because emergency funds contain a significant amount of currency, I encourage you to secure your funds in a discrete location. Also, an emergency fund can be established through a trusted financial service company. 

Of course, the amount of money you decide to deposit into your emergency fund is your choice. You can implant as much or as little as you desire into your emergency fund. However, it would beneficial to create a stable plan that requires you to insert a percentage of your earnings into the emergency fund.

This would set the foundation for a successful emergency fund, which will be favorable in your time of need.