A surprise expense is something that nobody can predict. If you have no emergency fund, these expenses can be extremely difficult to handle. There are many situations where having emergency cash would come in handy. Learn more about payday loans with bad credit at solidcashsolutions.com.
You Get Fired
As LearnVest notes, with the state of the economy leaving many people’s employment situations in limbo, there has never been a better time to have an emergency fund. If you are one of the unfortunate who gets fired, you’ll need some source of income. Having cash set aside can help you cover your bills while you are between jobs.
The Only Job You Can Get Requires A Move
After getting fired, you’ll need to find a new job. If this job requires you to move, you’ll need a way to fund that move. With the costs of transportation, a down payment on a home or first months rent on an apartment, the move could get pricey. If you have an emergency fund, you’ll be able to cover these costs without worry, according to the source.
There Is A Strange Noise Coming From Your Car
Car repairs are one of the most common surprise expenses. They can be expensive in many instances as well. With it being nearly impossible to tell when you’ll need a major repair, having an emergency fund will help in times of need. In all likelihood, your car is your main means of transportation, so it is important that you can pay for the repair.
In order to best prepare yourself, you should create an emergency fund now. According to Kiplinger, there are a couple ways to put away enough cash for an emergency.
1. Find Ways To Cut Back – One of the easiest ways to begin an emergency fund is to finds ways you can cut back. Look over your budget and see if there are any areas you are overspending. If you find any, put the extra money into a savings account for any surprise expenses.
2. Put Spare Change In A Jar – Although it may not seem like it would generate much, putting spare change in a jar is a good place to start. Over time, that quarter that you put in each day will add up to become a solid emergency fund. It probably isn’t the fastest way, but it is a good starting point for someone who doesn’t have a lot of money to save.