June 21, 2021 4 min read
Let’s use COVID-19 as an example of the importance of having an emergency fund. This is the first time people have been unable to work not because they are not capable, i.e. they got in a car wreck, their company closed, etc. but because of outside forces. A pandemic forced the shutdown of multiple companies and the employees are now out of work.
In this case, having an emergency fund with 3-6 months of expenses saved, would’ve helped alleviate some of the stress of being out of work. It won’t always be a pandemic that causes the need for emergency funds, other factors can impact your ability to work or obtain employment. That is why an emergency fund is so crucial.
Calculating Your Emergency Fund Needs
Remember, life happens! If you end up needing to use the money in your emergency, that is FINE! We have it saved for just that reason. Keep tracking, keep savings, and keep setting your goals until you have a comfortable amount for your lifestyle in your emergency fund.
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