Those of you who are having hard times to pay off any debts or current bills of your house, you may need to consider taking an emergency loan from a legit and reputed source. According to many professionals, everyone should have a liquid fund which will be handy to cover up the living expenses of at least 3-6 months of your life.
In the future, by any chance, if you face any financial issues which are not expected or calculated, your emergency fund will be the one to save you from that hole and you won’t be holding any debt. This fund will also help you if suddenly you lose your job or get sick, decide to repair your house or car.
You are always allowed to ‘geldlenen’ if you have any emergency. However, in this article, we will talk about the basic reasons one might need to consider having an emergency fund.
You have to pay off any debt of yours
If you are facing any unexpected condition where you have to add your expense, then your emergency fund will come to your favor. Until your urgent condition becomes okay, you can use the money from your emergency fund.
In case, you are unable to create any fund like this beforehand, you can always choose to ‘snel geld lenen zonder geode’.
If you have started creating a budget
If you just started working on your budget by creating a list, sometimes you may leave some expenses which you need but forgot to add. In this case, when the time comes, your emergency fund will help you with that.
One source of income
If you are someone who is the only income source for a family or you are single, then you should create an emergency fund. The fund should have at least one year’s worth of expenses you will have to spend later.
You are self-employed
If you are not working under any company or an independent contractor, you won’t be receiving any unemployment benefits in these cases. For that, you should have an emergency fund to help you out in the time of your need.
You have a house
Those who are the owner of their house, they know how much money it takes to repair the house from time to time. Even if you have a sinking fund that contains money to help your house when it needs remodeling or repairs, you will still need some amount to cover the cost of air conditioning or plumbing scenarios.
This way you will have to worry less as your emergency fund can help you out in some of these matters.
Medical issues or emergencies
Unfortunately, if you have any medical condition which can worsen up any time or you might have a risk to get sick in the future, you should create an emergency fund for that matter.
Living far from family
When you live far from your family, sometimes you may need to fly there urgently and you are not prepared. In that case, your emergency fund will be helpful.