Are you prepared for the unexpected? If not, it may be time to take the necessary steps to protect yourself, specifically in the financial sense. This brings us to the topic of emergency funds, which Robert Jain will be able to detail the benefits of. Not only will an emergency fund provide you with peace of mind, but it can be quickly used when it's most appropriate. Here are some of the best, as well as worst, purposes associated with these funds.
There are many ways that emergency funds can be used, but one of the best applications is in regard to medical expenses. It goes without saying that a visit to the doctor can be costly, especially without insurance, and this doesn't even include rates for prescriptions, procedures, and the like. This is where the emergency fund can come into play, as names such as Bob Jain can attest. In fact, this is one of the best uses worth noting.
Another reason to use an emergency fund is in case of an auto accident or mechanical difficulty. Even with insurance, you don't want to have to deal with the headache that comes with repairs from a body shop. Furthermore, if your car is perfectly fine but suddenly starts to break down, you'll have to pay as well. In situations like these, it makes perfect sense to build your emergency account ahead of time. The earlier that you do so, the better off you'll be.
When it comes to the worst purposes for emergency funds, let's begin with luxuries. These include, but aren't limited to, brand new TVs, cars, and vacations. While these are nice things to have, and worth saving up for, you shouldn't rely on your emergency fund for them. By dipping into said fund, you will have less that could have been used for more important reasons. If you desire these luxuries, saving your own money is the better course of action.
You should also know that emergency fund savings aren't meant to be used to cover student loans. While these loans can be difficult to pay off, there are ways to help yourself without dipping into the aforementioned fund. If you have a part or full-time job, your savings should be diverted to your student loans, ensuring that they're paid off sooner. By following through with this simple action, you won't have to touch your emergency fund.
There are many ways that emergency funds can be used, but one of the best applications is in regard to medical expenses. It goes without saying that a visit to the doctor can be costly, especially without insurance, and this doesn't even include rates for prescriptions, procedures, and the like. This is where the emergency fund can come into play, as names such as Bob Jain can attest. In fact, this is one of the best uses worth noting.
Another reason to use an emergency fund is in case of an auto accident or mechanical difficulty. Even with insurance, you don't want to have to deal with the headache that comes with repairs from a body shop. Furthermore, if your car is perfectly fine but suddenly starts to break down, you'll have to pay as well. In situations like these, it makes perfect sense to build your emergency account ahead of time. The earlier that you do so, the better off you'll be.
When it comes to the worst purposes for emergency funds, let's begin with luxuries. These include, but aren't limited to, brand new TVs, cars, and vacations. While these are nice things to have, and worth saving up for, you shouldn't rely on your emergency fund for them. By dipping into said fund, you will have less that could have been used for more important reasons. If you desire these luxuries, saving your own money is the better course of action.
You should also know that emergency fund savings aren't meant to be used to cover student loans. While these loans can be difficult to pay off, there are ways to help yourself without dipping into the aforementioned fund. If you have a part or full-time job, your savings should be diverted to your student loans, ensuring that they're paid off sooner. By following through with this simple action, you won't have to touch your emergency fund.
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For additional fiscal guidance, please contact Bobby Jain.. Also published at How You Should, Or Shouldn't, Use Emergency Funds.
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