Reasons You Need To Start Building An Emergency Savings Fund Today

AD| Money saving is a brilliant habit to get in to and is definitely something to consider when planning for the future, whatever your age. One important thing should look at when begin your money saving journey is building an emergency fund. An emergency fund aims to give you some financial support if you are ever faced with any unexpected expenses that come out of nowhere, or that you haven't budgeted for. 

Obviously, building up your emergency fund won't happen overnight, and honestly, that's okay! As long as your prepared and understand that it might take several months, even a couple of years to get to a stable amount financially, it's amazing progress and you shouldn't feel disheartened that you're not seeing hundreds or thousands of pounds add up. Financial stress can negatively affect your health and personal life, making you live your life with worry and anxiety for the future. By continually adding to your emergency fund every so often, you're setting yourself up a financial safety net in case of any problems in the future.


Car Repairs and Maintenance
Road collisions and accidents happen everyday, and is something we all genuinely try to avoid, but sometimes they can happen out of nowhere. Car repairs can be very expensive, especially if your insurance doesn't cover everything. Whether you need new tyres, replace a dead battery, get a new windscreen fitted or even maintenance factors like MOT, tax and insurance, all these things can prove costly, especially when you haven't thought about them whilst budgeting your monthly expenses.

Medical Issues
From unexpected illnesses to major accidents, one of the many reasons people begin saving up for an emergency fund is so you don't end up with large medical treatments and expenses, and no money saved up to pay for them. Even if you have already taking on some form of medical or dental insurance, it might not always guarantee all the costs are covered, so it's important to have some money to fall back in case you need to cover some of the expenses.

Funeral Care 
Something that we don't really talk or think about is funeral care and funeral planning. Funerals can be extremely expensive and very hard to deal with if you aren't prepared for them. Having some money saved up and set aside to help cover the costs of funerals after losing a loved one can really help keep your stress levels down and make the grieving process easier, as the financial costs is something you don't need to worry about. Heart of England Funeral care might be a great place to look if you are unsure as they are available 24 hours a day, 7 days a week offering help and guidance on all things funeral based.

Job Loss
 Every day, many people find themselves being made redundant or losing their job unexpectedly, and find this process extremely stressful and worrying as they won't have a steady and stable income. Having an emergency fund in this situation can be extremely helpful as you have money to pay your bills and expenses whilst you begin the search for another job in your career path. 

Home Repairs
Another reason emergency funds can be extremely useful in the event of an unexpected issues in the home. Sometimes housing problems can happen out of the blue, whether your fridge stops working, a burst pipe or cracked windows, but by saving some money aside, you are able to have some spare cash to cover the damage in an emergency. For example, broken glass in your home windows can devalue your home, and can lead to serious injury if left unrepaired. It can also leave your home exposed to bad weather and leaving you with home safety security problems like burglaries and break ins, so it's best to get things like this repaired ASAP for your own safety.

Self Employment 
For those self employed, with contractor or freelancer style jobs, sudden disruptions or lack of job availability can affect your income, and you may find yourself living with a limited amount of money. Working in self-employment, you can never guarantee your total months wages as some months you'll be having a constant stream of work and some months are lacking with jobs. By having an emergency savings fund, this may help you financially over a period of time until your next job or next client comes along.

Have you begun building your emergency fund? What type of things are you currently saving for?

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