An emergency fund is a financial best practice that every homeowner needs to adhere to. It will give you the peace of mind you need to ensure that you do not go into debt.
An emergency fund is a money that you put aside to use in case something happens that will cost you a large lump sum of money. It is separate from any other savings that you have.
Your emergency fund will help you when you need to pay for things like home repairs, appliance repairs, car accidents, family illnesses, or loss of a job.
If you are a homeowner and you do not have an emergency fund, you might find yourself in a situation where you have to use your credit cards or take out large personal loans in an emergency situation. These actions will cause you to accumulate more debt which is damaging to your finances.
In extreme cases incurring large amounts of debt could ultimately cause you to lose your home. Although you can not avoid unexpected emergencies, you can be prepared financially by having an emergency fund.
How to Start an Emergency Fund?
Starting your emergency fund is not as difficult as you might think. My How to Start an Emergency Fund - So You Don't Go Broke video on YouTube explains everything you need to know when it comes to starting and funding your emergency fund.
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If you do not have an emergency fund it is time to start one now.
Leave a comment and share your thoughts on having an emergency fund.