Last night was our first summer storm of the season for our area. There were a few injuries and accidents but mainly trees and branches down, fences torn apart and patio furniture and trampolines flying around.
This is one example why it is important to have an emergency fund. This would be classified as an emergency unlike a new outfit or brand new car as some think. By putting a little money away on a regular basis, it adds up and can come in handy when needed. Even if you have insurance, you may have expenses until you get reimbursed from the insurance company and if you have a deductible your emergency fund will come in handy. When you have money saved for times like this it is less likely that you will have to put it on your credit card or borrow money from other sources. If you put it on your credit card and don’t pay it all off you will have additional expenses of interest charges.
So although times are tough for many and saving may seem impossible, look at your expenses and budget and see if there are ways that you can put money away for when emergencies come up.