3 Reasons You Need an Emergency Fund
Unexpected expenses are bound to pop up eventually, whether it's a sudden illness or injury, car problems, a flooded basement, or any other cost you weren't planning for.
Although these types of costs are inevitable, many households aren't prepared for them. In fact, only 61% of Americans have enough savings set aside in a fund to cover a $400 unexpected expense, according to a report from the Federal Reserve Bank.
However, establishing an emergency fund can be more beneficial than you may realize. People who have healthy emergency funds are around 2.5 times more likely to feel confident about reaching their long-term financial goals, according to a survey from AARP. And there are three specific reasons why building a solid emergency fund can improve your financial situation.
Source Fool.com
