Why You Need an Emergency Fund

Say it with us: life happens. While you can plan and prepare all you want — and it’s very important that you should — sometimes, life gets in the way and leaves you with a few surprises. Without extra funds to fall back on, you could lose parts of the life you’re used to. If you end up in a bind, you’ll need an emergency fund to keep afloat.

Why You Need An Emergency Fund:

• You lost your job and can’t find a new one quickly. If you lose your job for any reason, you may not be able to find one at the same level of pay right away. An emergency fund of three to six months’ income can help you make ends meet until you find new employment.

• You or your family member needs extensive medical treatment. Sometimes insurance won’t cover all the procedures you need, and you can end up with a large medical bill when all is said and done. Having an emergency fund will help cover those expenses and save you the stress and debt of dipping into your savings or putting those costs on credit cards.

• Your identity is stolen, and you can’t use your credit cards. Let’s be honest — some of us rely on using our credit cards to pay for many of our purchases. If yours get locked due to identity theft, you’ll need an emergency fund to ensure you have a way to pay bills and other necessary expenses.

• You need a new car. If your vehicle suddenly stops running and you need a new one fast, an emergency fund will allow you to make that purchase without applying for car loans and waiting for them to get approved. You’ll also be spared from accumulating additional debt!

• You or your partner get unexpectedly pregnant. A child is an expensive blessing. Having an emergency fund will put you in a better financial position to prepare for your new baby.

It’s easier than you may think to set and keep an emergency fund. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From investments to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.