No one in the world can predict anything that’s ahead for them in life. You can plan where you want your life to go and what career you would like to do, but you can’t predict whether you will be in your job for the rest of your life. You can’t predict what the economy is going to do, and you can’t predict whether you are going to get on with you managers for the term you are in your role. Life is unpredictable, and all we can do is plan for the unexpected and give ourselves a money cushion for those moments where the unexpected happens.

If you are someone who struggles when there is an unexpected event in life, then you really should think about the best way to get an emergency fund together for those events. An emergency fund is a backup for you, so that in those moments where you need to replace your oven as soon as possible, you have something there to remove the stress. Stress in the middle of a financial crisis is not something that anyone should have to face if they can avoid it. For example, if you are working for a large company and you are in an accident on your way to work, you’d be using a company like to claim compensation for that accident and time off work that you will face. But what would you do in the meantime? Claims take time, and you need to make sure that your bills are paid, and your mortgage is covered. An emergency fund can make sure that you are covered at least for a few months while you get yourself sorted out. It can protect you from that stress, and there so many valid reasons out there for you to have one. We’ve got six of those reasons for you right here, so that you can start building a fund to cover your back in harder times.

Getting Out Of Debt. When you have an emergency fund, you can stop adding to your debt every month. The fund in your savings account can cover those unforeseen medical bills, the refrigerator breaking down and the car needing new brakes. The savings can handle those things and your disposable income can keep you out of debt by paying it down as normal. It is far easier to put money into debts when you have a fund to back you up.

You Have Just One Income. If your family only has one income to rely on, then you should start building an emergency fund as soon as possible. Ideally, you want six to twelve months of expenses as a backup for when things go wrong. If you are able to do this, then you should as soon as you can. Your emergency fund can be there for you when things get a little stretched, or if – in the worst case – you also lose your job meaning you have no income at all.

You Own Your House. Being a homeowner is a huge achievement, but the one downfall is that the buck stops with you. If you own your home, you will be the one to fix the roof or replace the boiler when it’s due to be replaced. You also will struggle to get financial help from the government if you lose your job, because they will see your house as an asset that could be sold to support your lifestyle. You will also have taxes to think about on your property, and if you have an emergency fund, you’ve got yourself covered when tax bills that are unexpected land on your doormat.

You Live Away From Family. Have you ever had that dreaded phone call that there is a funeral to attend? Those last-minute events that you must be a part of can be a drain financially, and while you don’t really think about money in those dire times, you still need to be sensible. You can’t hop on a plane or book a train with dust, so your emergency fund could back you up when you need to travel at the last moment. The best way to ensure you have the cash is to price up the cost of a last-minute flight or train along with a hotel stay and keep that amount and a little more for spending money in your bank account.

There’s A Medical Emergency. Ideally, you will have health insurance to cushion you when you have an accident, but a serious medical issue can really bust your deductible year on year. Tests, medicines and hospital stays can add up very quickly, but a savings account full of funds in an emergency can support you and your mortgage while you recover. It doesn’t matter whether your insurance says that they will cover you, pretend they’re not going to so that you can have the right amount in savings.

You Want To Protect Your Savings. If you are currently saving for a vacation or a new car, you can still keep your savings from being dipped into. Let’s say you have three accounts: your usual bank account, your emergency fund account and your savings account. The emergency fund can be dipped into when you need it while your savings stay untouched to save for your car. You may take some more time to build those emergency cash savings up again, but it’s better to use those when you need them than ruin your progress while you save for something that you really want.

Your emergency funds are going to be what bails you out in the tough times, and you need to keep on top of them to ensure that they can be there for you. You do not need to panic about things going wrong in life if you have a contingency plan to keep you secure and safe. Live your life in the knowledge that you have a cushion to land on when you need it.

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