Are you prepared for the unexpected? If not, it may be time to take the necessary steps to protect yourself, specifically in the financial sense. This brings us to the topic of emergency funds, which Robert Jain will be able to detail the benefits of. Not only will an emergency fund provide you with peace of mind, but it can be quickly used when it's most appropriate. Here are some of the best, as well as worst, purposes associated with these funds.
When it comes to the best purposes of emergency funds, medical emergencies should be discussed. Whether it's a broken arm, a flu shot, or what have you, it goes without saying that you'll have to pay a certain amount for each visit to the doctor. If you lack insurance, costs can rack up, so it makes perfect sense to use the savings you've accumulated in your emergency fund. This is just one of the multiple uses supported by authorities on finance, Bob Jain included.
Next, it's worth discussing the possibility of using an emergency fund for auto-related reasons. For example, if you get into accident, you may have to cover the costs of repairs done for your car, especially if you lack insurance. What if you're a perfectly safe driver, but you start to experience mechanical trouble when on the road? In situations like these, where expenses tend to be high, dipping into your emergency fund is a no-brainer.
When it comes to the worst purposes for emergency funds, let's begin with luxuries. These include, but aren't limited to, brand new TVs, cars, and vacations. While these are nice things to have, and worth saving up for, you shouldn't rely on your emergency fund for them. By dipping into said fund, you will have less that could have been used for more important reasons. If you desire these luxuries, saving your own money is the better course of action.
You should also know that emergency fund savings aren't meant to be used to cover student loans. While these loans can be difficult to pay off, there are ways to help yourself without dipping into the aforementioned fund. If you have a part or full-time job, your savings should be diverted to your student loans, ensuring that they're paid off sooner. By following through with this simple action, you won't have to touch your emergency fund.
When it comes to the best purposes of emergency funds, medical emergencies should be discussed. Whether it's a broken arm, a flu shot, or what have you, it goes without saying that you'll have to pay a certain amount for each visit to the doctor. If you lack insurance, costs can rack up, so it makes perfect sense to use the savings you've accumulated in your emergency fund. This is just one of the multiple uses supported by authorities on finance, Bob Jain included.
Next, it's worth discussing the possibility of using an emergency fund for auto-related reasons. For example, if you get into accident, you may have to cover the costs of repairs done for your car, especially if you lack insurance. What if you're a perfectly safe driver, but you start to experience mechanical trouble when on the road? In situations like these, where expenses tend to be high, dipping into your emergency fund is a no-brainer.
When it comes to the worst purposes for emergency funds, let's begin with luxuries. These include, but aren't limited to, brand new TVs, cars, and vacations. While these are nice things to have, and worth saving up for, you shouldn't rely on your emergency fund for them. By dipping into said fund, you will have less that could have been used for more important reasons. If you desire these luxuries, saving your own money is the better course of action.
You should also know that emergency fund savings aren't meant to be used to cover student loans. While these loans can be difficult to pay off, there are ways to help yourself without dipping into the aforementioned fund. If you have a part or full-time job, your savings should be diverted to your student loans, ensuring that they're paid off sooner. By following through with this simple action, you won't have to touch your emergency fund.
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