An emergency is a serious and unexpected situation that requires immediate action. Saving for emergencies is important for everyone regardless of their financial background.
Having an emergency fund that can cover three to six months of living expenses always comes in handy and gives you peace of mind in times of uncertainty - a sudden layoff from work , health emergencies or any unforeseen life change.
Here are some of the reasons why you should start an emergency savings fund today!
You will never be “that person”
Maintaining an emergency savings fund may be the most important difference between those who manage to stay afloat and those who sink in debt.
We all know that one person who never has their finances in order and is always borrowing from family and friends. An emergency fund will help you avoid awkward situations with family and set you up to be financially independent in the long term.
Unexpected bills will not ruin your plans
Forgotten bills, unexpected expenses, impulse buying; these happen to the best of us. Without an emergency fund, we get stuck and increase our chances of becoming financially dependent.
Saving towards emergencies help you easily pay for unexpected expenses such as child care bills, medical needs or even purchasing a new car.
You are covered if you unexpectedly lose your job!
We often tend to live from paycheque to paycheque and it can be quite difficult to save but the importance of cultivating a savings habit cannot be overemphasised.
Most employees who get laid off from work never plan for it but it is safe to say that those who have an emergency fund will be more at ease while they search for a new job than those who don’t.
You don’t need to have wads of cash around before you start an emergency fund. With as low as GHS20, you can start an emergency fund on Pennysmart. Give it a try at https://pennysmartapp.com