Four Reasons Why you need an Emergency Savings Fund

Four Reasons Why you need an Emergency Savings Fund

If you’re already struggling to save money or repay your credit card debt, you may not be thinking about adding to an emergency savings fund.  With that being said, in order to be financially healthy, you absolutely need to have one. Life is full of unexpected expenses and having a savings account like this will help lessen the blow when any hardship happens. Financial experts suggest that you have at least six months worth of living expenses saved.   This may seem out of reach, but it is possible with the right amount of budgeting in place.


In this article, we share some of the top reasons as to why you need an emergency fund and tips on how you can start saving for one today.

You Only Have One Income

If you’re single or you are the main breadwinner, you have a lot of pressure on you to sustain your household.  Living on one source of income without an emergency fund in place is like gambling. You’re simply crossing your fingers and hoping for a favorable result. One way to help with the stress of a one income household is to get a side hustle.  You can become an Uber or Lyft driver or pick up a job as a server in a restaurant.  If you do something like graphic design or writing, websites like Upwork can offer opportunities to make more money.  Nowadays there are so many opportunities to boost your income and savings.

You’re a Homeowner

Home repairs can be unexpected and expensive.  If you don’t have the money to cover these expenses, you can damage your credit and throw a wrench in your finances. Put a budget in place and start putting money into an emergency fund.  This will help take some of the stress out so you can actually enjoy the benefits of owning a home.

You become ill

We are not talking about a sore throat but an illness that could keep you from working.  This means you would most likely lose your job. Although you may be eligible for short-term disability, you would most likely be living on less than than your current salary.

You Live Far Away from Family or Other Support

Have you ever had to travel at the last minute to see family due to an emergency? If not, you’re one of the lucky ones. Emergencies can be costly and also interfere with a person’s ability to work. By saving enough money to help you in the event of a family emergency that requires you to travel, you can take some of the pressure off your yourself.  

Even if you agree that having an emergency fund is extremely important, you may be asking yourself, “How can I save for emergencies when I can barely pay my bills?” Sticking to a budget, being mindful about your spending, and looking for new sources of income can help you save more money. 


Denise Amara is a Senior Credit Strategist and Editor at, the ultimate authority on credit repair. Denise has over 8 years experience writing comprehensive guides that help consumers better their habits as it relates to personal finance and credit.