Five Reasons To Have An Emergency Fund

Saturday, September 28, 2013, 1:00 AM | Leave Comment

Many people do not understand the significance of saving for an emergency fund, often relying on credit cards or family members to pay for unexpected expenses should an accident occur. Although it may be difficult to not touch thousands of dollars that is in a separate account, it will prevent stress and panic when it is one day needed.

Five Reasons To Have An Emergency Fund

  1. Job Loss

    Unfortunately, job losses are more of a risk in a suffering economy, making it crucial to save for the worst and have a cushion in tough times. It will not only prevent the need for dependence on credit cards, but can be used before unemployment payments are issued.

  2. Car Repairs

    In a culture where cars are used on a daily basis with long commutes and dropping off the kids at school, normal wear and tear occurs, often resulting in problems with the transmission or even dead batteries. When waiting for pay day, it can be impossible to cover the costs without an emergency fund.

    A car title loan from can also be used in addition to an emergency fund to cover the full cost of repairs, while still keeping the car for the duration of the loan.

  3. Health Costs

    Simply visiting the emergency room can cost thousands of dollars, which health insurance will only partially cover. An emergency fund will make it easier to get through the difficult time and not have to worry about an extra night spent in the hospital or an unexpected surgery that needs to be performed.

    Similarly, unexpected dental costs for extracting wisdom teeth or gum surgery can cost hundreds to thousands of dollars, even with insurance, making an emergency fund crucial.

  4. Disability

    If an injury occurs at work, disability benefits can take several months to receive and are often only a portion of the salary that was once earned. An emergency fund that can cover up to six months of expenses and bills will make the season easier to manage while suffering physically.

  5. Tax Bill

    Annual tax bills often require totals that are higher than expected and can differ than in prior years. This can put a strain on finances and make it difficult to pay the mortgage, which can cause a ripple in personal finances for several months. An emergency fund will work to pay for the unexpected costs to the IRS, as the fund can be replenished again over time after it’s used.

Emergency funds often take several months to years to build, but will work to prevent a financial crisis from occurring and will secure the future. For those who are in the process of building an emergency fund, an eTitleLoan works to cover unexpected costs that can easily be paid back for fast cash that is available in the same day. Between the two options, it can be easy to have a different perspective on possible emergencies that can occur in the future.

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