What is an emergency to you?
Fifty-percent off on those shoes we have had our eyes on for a couple weeks (never mind that your spouse recently counted 75 pairs of shoes in your shared closet)?
A whining, begging, tantrum-throwing child who suddenly develops a passion for square-dance lessons (oh, by the way, her best friend is being forced by her parents to take said lessons)?
An island vacation because you are sick to death of your job and the weather in your area (and by the way we have enough room on the credit card to cover the cost)?
Some things may seem urgent or uncomfortable in the moment, but what is really an emergency?
Facing Emergencies & Keeping Your Finances Intact
Our finances can suffer a death blow or maiming as well. Job loss is a death blow to our finances, if we can’t replace that income before our resources run dry, but job loss isn’t the only damaging event. Insurance can mitigate some types of financial damage: House insurance, car insurance, medical insurance, life insurance, burial insurance, et cetera. However, other things can happen that we rarely think about.
What if a precious relative, outside of your immediate household, becomes ill or needs care? What if a relative, many miles away, dies without provision for final costs?
Many people suffer financially, and otherwise, because they didn’t have the means to pay for a funeral for a relative, but they obligate themselves to a debt for death costs they cannot really afford. They also didn’t have the airline fare, hotel costs, or any other provision to take care of what needs to be done in the case of illness or death of loved ones.
We need money to help us through those times so we can focus on what really matters: Getting the resume out, interviewing well, moving if necessary, and helping others. That’s why we have emergency savings accounts. Not for shopping splurges or last minute vacations, but for protecting our finances when it really counts.
How many of you have emergency savings accounts? If you don’t what is keeping you from saving?
Images from taxcredits.net