Have you ever been hit with a surprise expense? If not, you're extremely lucky and, like it or not, that luck probably won't last forever. I recently got hit with two in one month: a surprisingly expensive trip to the emergency vet clinic (my dog's fine now, thanks for asking!), followed within a week by even more costly car repairs. Good thing I had an emergency fund saved up.
Why you should save money for an emergency fund
You can be responsible and try to do everything right when it comes to your budgeting and spending, and still find yourself stuck with a huge bill you didn't see coming. That's why it's important for everyone to save money for an emergency fund.
Close to half of the people my age don't have an emergency fund. The numbers aren't that much better for other age groups. When asked if they could come up with $2,000 in a month for a surprise expense:
- 49% of people 18-34 said "no"
- 42% of people 35-54 said "no"
- 27% of people 55 and older said "no"
The problem is, you don't have the option of saying "no" when an emergency comes up. Imagine a mother whose child is injured and needs a trip to the emergency room. Can you picture her saying, "Sorry honey, no room in the budget this month." Of course not.
When there's an emergency, you have to pay. You can either pay by taking on debt and spending more later, or by tapping into the emergency fund you've worked hard to save up.
If you don't have an emergency fund yet, don't freak out. It's never too late to start saving money. We write about saving a lot here on the Kasasa blog so I’ve compiled some of our top saving posts to help you get started.
Posts on our blog that will help you start saving money today
- 9 ways to build your emergency fund
- 10 easy expenses you can skip to start saving money
- 6 tips for first-time home buyers saving for a house
- 7 steps to financial fitness
- 4 ways to save on your grocery budget
That should give you a pretty good start! Any other tips you've discovered to save money? Share in the comments and help our other readers get their emergency fund going.