Importance of Building an Emergency Fund

If we had the opportunity to see into the future, we would not be surprised about many of the things that happen to us sometimes. But as the adage goes, no one knows tomorrow. 

That is why it is expedient for everyone to prepare financially for the future. In other words, everyone must endeavor to have an emergency fund sitting somewhere to help in times of distress. 

But what at all is an emergency fund? It is money you deliberately set aside to help you handle unforeseen circumstances. The word deliberately is used because it is not something that comes easily. You have to discipline yourself to be able to do that. 

But what is the relevance of this? Let me help you to address the question below with these key pointers.

1. Good for handling unforeseen circumstances

Life is full of unexpected circumstances, and no one can predict. That is the reason why everyone needs an emergency fund. The truth is that over 90% of the unforeseen situations that happen to us demand money to handle them. Talk of funerals, sicknesses, sudden repairs, accidents, among others. 

In such situations, it is much easier if you have some funds you can easily access to handle the issue. In the absence of that, you may have to borrow money from friends, relatives, or financial institutions, which comes with its conditions and disadvantages.    

2. Helps you avoid unnecessary trauma

It can be very traumatizing to deal with an emergency when you don’t have money readily available for such use. Such situations can affect your mental health because you have to overthink and find a way out. That is why having an emergency fund is necessary because it will help you avoid going through hell to get funds to attend to such needs.

3. Helps you avoid embarrassment

An emergency can sometimes make you vulnerable to many people around you. That is because you virtually have to run from one person to the other, begging for help. But having an emergency fund will help you avoid that. If you don’t want to go through an ordeal one day, then building an emergency fund is the way to go. Start today and enjoy tomorrow.   

4. Makes you learn how to save money diligently

Disciplining yourself to build an emergency fund is also a way to save money. Apart from the fact that the fund help you in times of trouble, it helps you to cultivate the habit of saving. 

These and many more are reasons why you need to be intentional in building an emergency fund. 

I end by saying that if you are in financial need now, we have good news for you. The solution is SRF. We provide affordable loans at discounted interest rates for employees, individual and businesses. 

Call us now on 0240061709, and we will deliver. 

Follow SRF on Facebook, Twitter, Instagram, and LinkedIn for more.