Why is an Emergency Fund Important?

[Suba]

Of course, we all have different ways/methods when managing finances, some are super tight and some are loose in spending their money, but whatever it is, we all agree that we should be able to have an emergency fund. But unfortunately there are people out there who underestimate the function of emergency funds or they don't realize how important emergency funds are for both individuals and families. So in your opinion, why is an emergency fund important?

 

[King Belieal]

An emergency fund helps you to stay away from debts and have a safety net to fall back on as quickly as an emergency needs urgent action. It is different from an insurance. An emergency fund is used for quick response.

 

[eLdavis]

Emergency can come up at anytime, and these are things we do not plan for and in most cases do not have the funds for since it was not planned. Having an emergency fund helps prevent a situation where you would be stranded completely.

 

[Xtynehappy]

The emergency fund is very important in the sense that it gives one the peace of mind in cases where something that needs financial attention happens urgently on how it would be sorted out.

 

[freelancermaria]

Having an emergency fund is crucial in case of unexpected expenses such as medical bills. It can save you from having to take out a high-interest loan and prevent you from disturbing your financial objectives. By having a rainy-day fund, you will have peace of mind knowing that you have a financial cushion to fall back on when the unexpected happens.

 

[magnus2022]

Due to high level of inflation, a lot of people can not be able to keep some funds for emergency purposes. As things stands now, a lot of people are wallowing in poverty. Barely able to eat on daily basis. A person that can hardly afford to eat have no business keeping money for emergency.

 

[Xtynehappy]

It's very important for one to have the emergency fund. The good thing with that is that it provides one a peace of mind in case of rain days.