Why is having an Emergency Fund so Important?

No matter how much you plan, there can be those moments when you need to pay an emergency expense with your payday still days away. This is when having an emergency fund can really help you out.  If you have one of these emergencies pop-up for you without an emergency fund, it can result in a real financial crisis.

Having an unexpected expense occur is something that happens to millions of people every day.  There are a range of solutions available to you if you run into an emergency and don’t have an emergency fund set aside to cover it immediately.  There are lenders out there who offer short-term loans called cash advances that can be used to pay those expenses and keep you going until payday.  The main caveat with these cash advances is that they can charge a high rate of interest!  Careful financial planning is suggested to prevent putting yourself in these types of situations.

I highly suggest you diligently work to set aside 3-6 months of expenses as an emergency fund that you do not touch unless you have an extreme unexpected emergency!  Look at these four different emergency examples below that could hit you unexpectedly at any time.  If you don’t plan ahead to set money aside now in an emergency fund, you could really end up in a jam and have to look for a cash advance.

Emergency Car Repairs

When the car breaks down days away from payday and the bank account is empty, it can be a frustrating feeling. The credit cards are maxed out and you really do not want to ask for an extension just so you can take on more debt. You haven’t taken the time to think about setting up an emergency fund.  The other problem is that you do not want to borrow money because you have had issues borrowing money from friends and relatives in the past.

The easy solution, now that you have worked yourself into this situation, is a short-term cash advance. You can talk to a professional finance company and have the money to fix your car in one or two business days. Most finance companies have flexible repayment terms and you can even choose to have your payment taken right out of your next paycheck.

Medical Expenses

Even though you probably have health insurance (and you may have taken the step to get rid of your short term disability insurance), you would be surprised at how many expenses are not covered. For example, some of the medications you need to take and therapeutic equipment such as crutches are often not covered by health insurance. If the need arises for medical services or items that are not covered by your insurance and you do not have the cash in an emergency fund, then what should you do?

You should never deny yourself or any family member medical attention because you are short on cash. Now that you are in this hot water, you need to contact a professional finance company and get a short-term cash advance to cover those emergency expenses and keep yourself and your family healthy.

You Run Out of Food Early

Everyone has had those weeks where nothing seems to go right and there does not seem to be much you can do about it. But what do you do when payday is a week away and the refrigerator and cupboards are empty? It looks like something went wrong with your grocery planning for the week!  You look into your savings but it is empty (no emergency fund) and you know that you do not have any room on your credit cards. You didn’t plan for this to happen, but now you need a solution.

The fastest way to put food on the table is by using a short-term cash advance. Since most professional finance companies can have the money in your account in one business day, you can use that money to fill the refrigerator and have what you need until payday.

Taking Your Pet To The Vet

Pets are members of your family, but they can also be extremely unpredictable. If you suddenly find yourself needing to take your pet to the veterinarian but you do not have the cash to pay for the appointment, then you are in a situation that you have to resolve to help your furry friend feel better.  This happened to us a couple of years ago, and we were hit out of the blue with a $400 vet bill.  It was a very good thing we had an emergency fund ready to go!

Before you take your pet to get medical treatment, contact a short-term cash advance lender and get the cash you need to pay the bill. When you see your pet recovering at home, you will know you made the right decision.

If you have not taken the steps to create a proper emergency fund for yourself, you may be in a tight spot.  There will come a time when you need cash fast and the bank account is tapped out. In those situations, you can rely on finance professionals such as CEO Ian Mackechnie to utilize their organizations to get you the cash you need.

Why is having an Emergency Fund so Important? – Final Thoughts

Why is having an emergency fund so important?  You can see that the four emergency financial scenarios I covered above really could happen to you at just about any time.  If you have been diligent with your savings and have money set aside, then you can move forward without too much stress.  If you have not planned well, then you may have to work with a professional finance company to get you the cash advance you need now.

If you find yourself in need of a cash advance, then you need help!  This is a warning sign that your finances are out of control and you may need to talk to a professional or expert to help get your financial life back on track.  Things may be bad enough where you also may need to consider declaring bankruptcy.