Your Emergency Fund – Understanding the Importance of Cash
“Never spend your money before you have it.” -Thomas Jefferson
Have you ever lost your job? Has your car ever required an expensive fix? Have you or a family member ever need funds for a hospital visit?
Now imagine that you didn’t have access to cash to pay for that emergency. What would you do?
The mass issuance of credit cards has allowed people to neglect the need for an emergency fund. This is a mistake. An emergency fund is not only about preparing for the rainy day that you will need the funds. It is also about reducing risk, providing you options, and helping you sleep better at night knowing that your financial emergencies do not have to be debilitating.
According to Go Banking Rates, 71% of Americans have less than $1,000 saved in their savings account. Although some age groups vary by a small margin, 70%+ of them (including seniors) have less than $1,000. If their income is cut off for even a few weeks, how are they going to survive?