- I die?
- Have a stroke?
You should ask yourself:
- Do I have enough money for my care?
- Who will take care of my children?
- Who will pay for the mortgage?
- Do I have disability insurance? Will my work cover me if until I get better?
- Do I need catastrophic health insurance? (aides, Alzheimer, cancer).
- Are you going to be a burden to your kids? Remember that your kids will also have a family.
- What if your child is born with a special need? Is there any provision from the government for that?
- What if I am 50? I will retire in 10 years, how can I save money for my child’s education?
Financial Literacy will help you become better prepare for unforeseen situations like this.
Creating an emergency fund is crucial for yourself and your family.
An emergency fund implies saving the equivalent of at least 3 months of basic living expenses in order to:
- Be better prepared to overcome emergency situations.
- Reduce your dependence on credit cards when emergencies arise.
Emergency Funds: Why you need one, how much you need; where to keep it
Establishing an Emergency Fund means saving on a regular basis to create the fund. You should only use this fund for emergencies and resist the temptation to use it for non emergencies opportunities.
Review these articles on how to start your Emergency Fund: 21 Strategies for Creating an Emergency Fund, and Why It’s Critical
The Basics- Set Up an Emergency Fund.
If you’re still not convinced, take a look at this Blog were you will read about some real life experiences and the importance of an emergency fund.
Personal Financial Tips
- Pay your bills on time.
- Eat more at home and less out.
- Take your food to work.
- Forgo the ice cream store and pop popcorn at home.