The importance of Emergency Funds.
Life is full of circumstances and most of these cannot be predicted. In other for us to be able to sustain financially, one needs to be prepared for these sudden circumstances. We remember year 2020 when Covid-19 became full blown. Lot of people lost their jobs, it became very had to survive and even sustaining the family was a hige problemfor many. This period of time was a really trying one as there was even no job and you can't go out to seek for one. People's finances generally went down the drain. This alone must have taught people the importance of having an emergency fund.
What is an emergency fund?
Emergency fund is a series of savings made by an individual with the goal of meeting targeted needs during an event of sudden financial shock or disaster. It is that money that can be run to when things took a sudden bad turn financially.
It is very important to have an emergency fund as a person. This is because one can't determine what will happen tomorrow or the kind of situation we might find ourselves in. Its better to prepare for trying days like this.
Mind you savings is difference from emergency funds. Savings can be used to settle different things but emergency funds has a sole purpose and must not be tampered with. This type of fund is very important when one want to take some loan. This is because Loan always come with interest but with the emergency fund you can be rest assured that no interest is attached to the money. Also it saves you from going from grass to grace when faced with financial meltdown. It will be so unwise not to have one.
In order to start gathering money for the emergency fund, one can set a smaller achievable monetary value first like 50k and from there you you begin to increase the money little by little. Therefore, make a decision to start an emergency fund today.
THANK YOU FOR READING MY BLOG. HAVE AN AMAZING DAY.
Posted Using LeoFinance Beta
View or trade
BEER.Hey @gloriaolar, here is a little bit of
BEERfrom @pixresteemer for you. Enjoy it!Do you want to win SOME BEER together with your friends and draw the
BEERKING.It is true, having an emergency financial fund is of vital importance for everyone, especially when we are entrepreneurs or self-employed.
Personally, it happened to me that the year 2021 was very profitable for me, financially speaking, but this year 2022 has not been so profitable; however, because I had emergency funds available, I was able to maintain me and my family during this very difficult and complicated year for cryptocurrencies.
So having an emergency fund always available is something that is not a luxury, but a necessity, because as you said, you never know exactly what will happen tomorrow or in the future, so we should be aware in this regard.
Your post is very good contribution. Greetings.
Posted Using LeoFinance Beta
Thank you so so much. I'm so glad I do too cus it's been a tough year with this bear market. I can hardly touch my earnings and even sales has been low. I'm greatly for the emergency funds I've set for myself. It sure is a necessity. Thank you so much for your amazing comment.
Emergency funds are indeed very important.
However, most of the persons I know don't even have one. Instead of saving for an emergency fund, they would rather use it to feast on food and vices. That makes it very scary when time comes as they will be at the mercy of other people offering loans with a very high interest.
I've seen this happened and I also experienced it myself in more than one occasion.
!1UP
You're absolutely right. That's why I try to enlighten people around me the need to have one. Life isn't black and white and it's very important to prepare for rainy days. It's just that people that don't earn much find it difficult to keep some somewhere else when what they earn isn't even enough to get them through the month. What they don't know is, they can still save even just a little from it and think of ways to improve their income sideways.
Thank you so much for your comment
The pleasure is mine. 😊
You have received a 1UP from @thecuriousfool!
@leo-curator, @ctp-curator, @bee-curator, @neoxag-curator
And they will bring !PIZZA 🍕.
Learn more about our delegation service to earn daily rewards. Join the Cartel on Discord.