These are bleak scenarios that no one wants to imagine happening to themselves, but will you be financially prepared if it ever did? If not, then now is the time to start building your emergency fund.
You can use it to pay for unexpected expenses, such as car repairs, home repairs, replacing your furnace, or replacing your income in case of job loss or unemployment.
As per a Bankrate survey, over 25% of Americans do not have any emergency savings at all. Out of the 75% who have an emergency fund, most do not have enough savings to last three months.
Emergency funds can help you in unexpected financial emergencies. Without it, you may have to borrow money or use your credit cards to pay for unforeseen expenses, leading to debt and financial problems.