Unfortunate circumstances can be difficult to predict, which is always why it's important to be prepared for the worst. Robert Jain, as well as other names in the world of finance, will agree, which brings us to the topic of an emergency fund. Most households have this set up, and for good reason. It's in your best interest to create one for yourself if you haven't already. For a better understanding of how this can be done, read on.
There are many ways that emergency funds can be used, but one of the best applications is in regard to medical expenses. It goes without saying that a visit to the doctor can be costly, especially without insurance, and this doesn't even include rates for prescriptions, procedures, and the like. This is where the emergency fund can come into play, as names such as Bob Jain can attest. In fact, this is one of the best uses worth noting.
What if you get into a car accident or your automobile starts to break down? Auto incidents such as these call for your emergency fund to be used. After all, you must ensure that you have a way of moving from place to place. You also want repairs to go so smoothly that you won't have to worry about your vehicle breaking down, at least for an extended period of time. When it comes to your automobile, feel free to use your emergency fund.
What are some of the ways that an emergency fund shouldn't be used, though? Let's start with using the savings for luxuries that, simply put, aren't needed for day-to-day life. If you already have a laptop that performs all the actions you need it to, do you need a brand-new computer that you may not be able to afford? You may feel compelled to dip into your emergency savings but understand that they're meant for more important purposes.
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.
There are many ways that emergency funds can be used, but one of the best applications is in regard to medical expenses. It goes without saying that a visit to the doctor can be costly, especially without insurance, and this doesn't even include rates for prescriptions, procedures, and the like. This is where the emergency fund can come into play, as names such as Bob Jain can attest. In fact, this is one of the best uses worth noting.
What if you get into a car accident or your automobile starts to break down? Auto incidents such as these call for your emergency fund to be used. After all, you must ensure that you have a way of moving from place to place. You also want repairs to go so smoothly that you won't have to worry about your vehicle breaking down, at least for an extended period of time. When it comes to your automobile, feel free to use your emergency fund.
What are some of the ways that an emergency fund shouldn't be used, though? Let's start with using the savings for luxuries that, simply put, aren't needed for day-to-day life. If you already have a laptop that performs all the actions you need it to, do you need a brand-new computer that you may not be able to afford? You may feel compelled to dip into your emergency savings but understand that they're meant for more important purposes.
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.