Life’s full of surprises. Whether big or small, bad things happen at unexpected times, so it is important for us to stay prepared at all times for these unexpected events. One way to stay ahead of the game from a financial standpoint is to keep an Emergency Fund. In this article, we will explore Emergency Funds, what they are, and the benefits of having one.

As previously mentioned, unexpected tragedies can happen whenever, wherever, so staying prepared financially is important, and acquiring an emergency fund can help you immensely. The concept of an Emergency Fund is simple: An emergency fund is a savings account that you set aside in order to cover or compensate for emergency expenses. Situations where an emergency account may be used are: covering medical bills, car repairs, or keeping your finances afloat during a time of unemployment.

Now, you may be wondering what the point of having an emergency fund even is if you responsibly set aside a set amount of cash. Well, there are a large number of benefits, including: Potential for yielding high interest returns, financial security (takes away risk of theft or damage of cash), helps you easily budget and keep your finances organized, and of course, reduces your temptation.

In a blink of an eye, tragedy can strike and turn your entire life upside down, and when you are going through hardships, the last thing you want to worry about is your financial stability. So, purchasing acquiring an emergency fund is a great solution in order to help you save, earn interest, and budget to support you in your time of need.