![]() ![]() It’s just any money that you have set aside and will not use unless it’s an emergency. You can’t go to your local bank or credit union and ask to open an emergency fund. Emergency funds are not specific types of accounts. Any expense that isn’t an emergency should be budgeted for already.Īn emergency fund is sometimes called a rainy day fund or emergency savings fund. Or paying for the unexpected funeral of a loved one.Įmergency funds are for true emergencies that cannot be predicted and need to be fixed ASAP in order for you to continue to work, eat, take care of family, etc. Or paying for a medication that you need to stay healthy. Like needing to fix your car so that you can go to work. An emergency is a bill or unexpected expense that can’t be delayed. What Is An Emergency Fund?Īn emergency fund is nothing more than money set aside in case of an emergency. Today, I am going to explain what emergency funds are, how they work, how to create one, and how to use it to protect your family from a financial emergency. This highlights why having an emergency fund is so critical. It wouldn’t be a stretch to say it would have resulted in missing a month or two of rent payments. ![]() But without having a car to get to work, she would have lost her job. So it would have meant not getting it fixed until a couple of more paychecks arrived. Growing up in poverty, this type of repair would have likely cost my mom more money than she had. In fact, our emergency fund was there for exactly this type of unexpected event. I felt incredibly fortunate that for me it was simply an inconvenience thanks to having an emergency fund. The reality is that needing to replace both tires would be a financial catastrophe for most families. ![]() The Average Person Can’t Afford A $400 Emergency Payment Especially since most people care more about looking rich than being wealthy. I almost thought I was on a hidden camera show because everyone’s reaction was so similar.īut looking back, it made sense. They punched the steering wheel, got out slowly to look at their tires, and then shouted “Noooo” at the top of their lungs as their arms flailed in agony. Each person literally did the same exact thing after pulling over. In what almost seemed like a scene out of a movie, five other cars pulled up behind us over the next 45 minutes, having hit the same pothole and gotten blowouts. They each had holes the size of golf balls so they were 100% useless. Both passenger tires that hit the pothole had blown out. I was relieved we were all safe and healthy, but the damage to the car was worse than expected. Thankfully, I was able to maintain control of the car and make my way to the right shoulder. I clenched my teeth and closed my eyes for a split second as I braced for the slam.Īs if on cue, the car started to wobble and the unmistakable rattling of the wheels signaled that a tire had blown out. Anyone who’s ever driven on the highways around Philadelphia knows exactly what I am talking about.īefore impact, I frantically tried to veer out of the way, but I was boxed in by cars in the lanes on either side. In retrospect it was more like a sinkhole, mercilessly engulfing anything that tried to pass over it. I was driving my brother to drop him off at the airport when I slammed into a pothole on the passenger side of the car. But first, I had to make sure we were okay. My fate had been sealed, or rather the fate of my tires. “Ahhhh!” I yelled in agony knowing it was too late. ![]()
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