What is the importance of building an emergency fund?

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Everyone has their own experience with money, and I can only tell you from what I have actually experienced myself.  I am going to tell you nice and loud that it is so important to have and build an emergency fund.  If you take out of your emergency fund, build it back up.  The storm will happen. It has happened to us. It has happened to our friends. It has happened to everyone because we are human.  Let us tell you a secret you will be able to be safe and self-insured that you won’t have to get into more debt or get into debt at all. 

Let us share with you some things in life that have happened in our live or someone we know and how an emergency fund has saved them in the middle of the storm. 

1. Life Happens

Yes, life happens to us all.  Why does it because we are human.  We are here on earth to experience life.  It does have storms. It does have seasons, and one of the seasons is winter. Winter is the hard season that you need to be like a bear or a squirrel and gather up money for. Just as in Genesis, Joseph advises Pharaoh to plan ahead for a disaster season.

Genesis 41:34-36

“Then Pharaoh should appoint administrators over the land and take one-fifth of all the produce of the land of Egypt during the sever years of abundance. During the good years that are coming, they should collect all such food and store the grain under Pharaoh’s control, protecting the food in the cities. This food will be reserved for the seven years of famine to follow in the land of Egypt so that the land wont be ravaged by the famine.”

That is why you have an emergency fund. 

2. Car Repairs

Car repairs happen whether you have a new car or an old car.  With a new car, you must keep your car updated with routine maintenance.  Also, you will be paying a higher price on insurance to keep it.  With an older car, you have things that break down and you will need to fix it.

I can remember my Chevy Cobalt.  I ran that car to the ground.  I got it my senior year of high school and was so proud of it.  It was my first real purchase, and after several years. The A/C broke and yes I could have drove it without A/C and put the windows down.  But in Nebraska when it is 100 degrees. you do not want to do that especially when you are going to a corporate job. 

That is why you have an emergency fund. 

3. Break Down

Anything you own can breakdown. Take it for example a computer.  It might be necessary for you to have a computer that works for your income. You will need to get it repaired. It will need to be fixed sooner than later.  If you are an entrepreneur, it will be way more important for a quick fix or a new purchase.


4. Financial Impacts

Maybe you or someone you know had a job loss.  This hurts and this is a huge financial impact for you and your family. You never know when it could happen.  I remember when I experienced a job change that was not my choice.  It was the company’s decision to make a corporate change.  I know someone who lost their job, and lost their home in 2008. It can happen and it can happen to anyone that is why we must be prepared.

That is why you have an emergency fund. 

5. Health Scares

We know someone who had really bad diabetes and with that sometimes they have problems with their feet. Well this happened to this person.  They did not expect for their foot to not heal, and kept having to leave work without pay and go back to the doctor time. The unexpected does happen with health.

That is why you have an emergency fund.

6. Accidents

My little sister was in an accident, and yes insurance did cover most of it.  However, it was such a big accident and the person was not corporative and brought the lawsuit out longer and longer.  Thankfully she was not hurt or anyone else was really hurt, but it was big enough that our lawyer suggested we pay them to have them leave us alone. 

That is why you have an emergency fund. 

7. Pets

Pets need care just like us humans do.  I can remember when I gained two dogs in our marriage and they needed to see the vet due to an allergy.  The one dog was breaking out and non-stop itching.  She had made herself so raw that we needed to act.  We ended up having to give her allergy shots that were expensive.

That is why you have an emergency fund.

8. Utilities Surges

New home? New apartment? You might be adjusting to the climate around you, and not realize how much A/C or heat your new place takes.  I learned this the first winter in my fancy, but old apartment.  My Utilities were so high I about dropped dead.  I had to figure out how to cover my big windows to save heat and close the blinds more in the summer months to save my bill. 

That is why you have an emergency fund. 

9. Uncle Sam

I have not had uncle sam pay myself personally a visit, but I have heard through friends of horror stories that their tax bill is so high. They do taxes last minute because they owe uncle sam.  If you have an extra money saved up though, when tax time comes around it doesn’t have to be that bad and wait until the last day to do taxes. 

“…So pay everyone what you owe them. Pay the taxes you owe, pay the duties you are charged, give respect to those you should respect, and honor those you should honor.” Romans 13:6-7

That is why you have an emergency fund. 

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10. Home Repairs

The refrigerator breaks or even better the laundry machines. I can remember when my mom had her laundry machines break down. With 3 girls, you need to consistently do laundry otherwise you get behind.  They could not just have a quick fix for the machines because they were just old and needed to be replaced.  They had to come up with a lot of money to be able to quickly replace the washer and dryer.

That is why you have an emergency fund.

11. Sick Family Members

Someone in your family could be sick, so you take more time to travel to see them or take more time off to go visit them.  This takes money and time. Unfortunately, we have experienced this too and I know a lot of people who do and don’t expect to.

That is why you have an emergency fund. 

12. Death in Family

My grandpa passed away while I was living in Richmond, VA, and my family lives in Nebraska.  With my grandpa health not the best, I knew I could have to drop the hat and go home due to his passing.  Well that moment happened for me, and I had to buy a $800 last minute airplane ticket home.  Yes, it is not fun nor what you want to spend your money on, but it does happen.

That is why you have an emergency fund.

Like if you have an emergency fund.

Like if you do not have an emergency fund.

Pin to share with someone in your life who needs an emergency fund.

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