I hope I have emphasized enough the importance of building up a savings fund or emergency fund in my previous posts. It should be one of the priorities to becoming financially independent.
Financial experts recommend saving at least 3-6 months worth of your living expenses in a bank account so you can easily withdraw the money when emergencies arise.
I learned to appreciate the benefits of savings fund this year when I was laid off from my previous job. I had been working in a school for almost 2 years and I never thought that they will cut me off. The worst part was that they only gave me 3 days notice. I was surprised and unprepared for the news. I will not be giving more details as to why I was laid off because I have already accepted it to be a learning curve of my life.
But I tell you how sad I was for the days that have passed after that. It felt unreal. I didn’t expect it would ever happen to me. My emotions evolved from sadness, anger, relief and eventually acceptance.
Questions started popping up to my head such as “What should I do next?” and “What are my next plans?”.
The good thing during this situation was the fact that I have a savings fund to support me for the next 5-6 months of my unemployment. It allowed me to survive without borrowing money from my family and friends. I was still able to do things I like and I even went to a quick out of town getaway with my family on the weekends. I was also able to find another job, a better job, without feeling pressured to do so.
I had a peace of mind in terms of money. I was just a bit concerned of the thought that I would be taking money from my savings and not adding something on it. Don’t forget to replenish your fund when you’re back in the game. That is what I plan to do when I get my first salary from my new job.
I am thankful that I have saved money before. That instead of spending it, I deposited part of my salary into my bank account. It wasn’t easy, I am telling you. I lived and still living below my means and I sacrificed a few things along the way but I never regret it.
My advice is for you to start saving now and don’t wait for an emergency to happen. I assure you that you will feel better and confident about your life when you have a savings fund that will back you up when anything goes wrong. Here’s a post about How to Start Saving Up for the Rainy Days.
Do you also have a story of an emergency in your life?
How did you handle it financially?