Reasons you need an Emergency Fund

I released a gem of a post a few months back and it was all based on the good old emergency fund topic we all love. Now I will impart unto you a second rendition of the reasons you need an emergency fund.

This is a great topic that everyone can relate too, and I created with a semi-comedic twist to make all of you crack up literally while reading. Talking about money can be funny if you just try a different approach.

I wonder if everyone had an Emergency fund how much easier and simpler life can be. One of the basic foundations of money management is having a savings fund. If this is too hard for you, and you are employed in today’s world then something is seriously wrong. Now let’s get back to having a blast with this topic as I would like to keep things light.

Reasons you need an Emergency Fund:

–          You need an EF when you’re doing Limbo at a cousins wedding party, but you go so low, you can’t get back up. A Ruptured back muscle and a dislocated back disc is the prognosis, and now you’re out of work for a while.

–          You need an EF if you’re playing beer drinking games at a friend of a friend’s house, you get so drunk, and you don’t realize someone just stole your wallet, watch, and sneakers. They buy a bunch of stuff the next day on your dime aka lost credit cards. Now you need to replace those Nikes, the fine quality leather wallet, the gold plated watch, all Motor vehicle fees and time wasted replacing all the lost stuff.

–          Now you def. need one if you thought the price of gas was going to stay under 2 bucks for at least 5 years because you keep believing the news media, specifically fox fake news reports. Because of this unreliable made up report you went out and bought a massive SUV that particularly likes to guzzle gas like a T-Rex. Your Gas bill a month jumps to 400 bucks and you live paycheck to paycheck.

–          You might need one if your local Starbucks closes down, but you can’t live without your 3 cups of joe per day addiction. Now you must resort to drive 20 min out of your way to patronize another coffee brew shop across town in the new fancy big SUV.

I hope you found these reasons why you need an emergency fund to be funny, and can easily be corrected for anyone with common sense. All jokes aside the main reason you need an emergency fund is and should always be to avoid debt. Emergencies arise and if you have the money you can eliminate the anxious times when you might be placed in a dilemma to tacking on new dreaded debt. When in doubt avoid adding debt at all costs.

How can you establish the Emergency Fund with ease and make it a successful back up cash account. By successful, I am saying that it will get funded first and foremost and second that you will not touch it. As those are the main two issues affecting people who lack an emergency fund.

How to Establish the Emergency Fund Today:

–          Make funding automatic through direct deposit.

–          Do not get a debit card attached to the emergency fund account.

–          Fund it with at least 50 bucks or more per paycheck

–          Attempt to avoid using the money for living expenses (Hence an EF fund)

–          Strive for at least 4 months or more of living expenses, never more than 12                months (If you go over invest the difference in long term assets)

Comment on the reasons you need an Emergency Fund?

Rich Uncle EL