Car crashes. Health scares. Unexpected flooding in your upstairs bathroom. Unforeseeable accidents happen, that’s life. We don’t always have control over these incidents, so there’s no reason to stress.
The best thing you can do is prepare yourself in case of an emergency. It’ll require some forethought on your part, but at least you can take comfort in knowing that you’ll be prepared for any kind of situation.
Setting up an emergency fund can prevent you from resorting to desperate measures. Imagine if you had to open a new credit card account to pay off a significant home expense. The interest alone might make you consider living outdoors for the next few years. Instead, set aside a savings account that will only be used in dire situations.
Most financial experts recommend you save up to about six months of regular income to complete your well-rounded emergency fund. If you haven’t started already, establish an emergency fund today. Remember, it’s better to be safe than sorry.