Think you can get by without an emergency fund? Check out these reasons for having one, and you won't want to.
An emergency fund allows you to:
- Take the pressure off of your monthly budget- with separate funds in place, your checking account no longer has to absorb all those extra bills that life throws at you
- Reduce financial stress- when you know you've done your best to prepare for the what-ifs, few things cause you worry
- Stay out of debt- if an unexpected expense pops up, you have the money to deal with it – sans credit cards
- Protect your credit- a big expense won't send you on a downward spiral of late and missed payments
- Minimize drama- with a sufficient cash reserve in place, you're able to handle problems quickly and with a minimum of emotion
- Focus on the emergency at hand - not how you're going to pay for that emergency
