When budgeting our income most of us rarely consider having an emergency fund. An emergency fund is an account used to set aside funds needed in the event of a personal financial dilemma. Financial experts advise that you have money that you save three to six months of your earnings. Below 10 reasons why you should have an emergency fund.
1. You lose your job and can’t quickly find another one at the same level of pay.
2. You have an unexpected illness or accident that may affect you going to work.
3. You experience car troubles that require fixing.
4. Your pay has been cut down meaning your daily living standards may be challenged.
5. If there is need for an urgent medical treatment even if you have health insurance.
6. You are forced to accommodate a friend or relative who moves in with you due to their own personal or financial crises.
7. Your lose your valuable documents and cards i.e. national ID, credit cards etc and there is need to replace them.
8. A relative or friend of yours passes away suddenly in another part of the country (or the world).
9. If an accident such as fire or natural disaster strikes and forces you to move out of your home.
10. An unexpected professional change forces you to relocate quickly.