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 of 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 depressed I was days later it happened. 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.
In terms of money, I felt assured and unworried. I was just a bit concerned with 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?
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I also rely on my emergency fund to see me through sudden emergencies. I’ve used it mostly for medical expenses. While it hurts to see cash balances decrease, the peace of mind that comes from not having incurred any debt is priceless!
I truly agree! It should be a must for everyone to have their own emergency fund, especially for hospitalizations or check-ups when feeling sick. This is also what I am really working on for my fund because I don’t want to be one of those people who can’t get the best treatment/cure because of insufficiency of funds. Thanks for dropping by my blog. =)