Before going ahead discussing the right context on the importance of money during medical emergencies, let’s recall our daily life chores. From the moment in the early morning you rise from the bed, getting ready for work, and eating breakfast to heading back to the bedroom at the end of the night, there are endless moments where we figure out the need for money. Yes! It is money that drives our life in comfort. Or in other words, the importance of money is in combating all existing and potential troubles of our life.
How saved-money helps you fight medical emergencies?
You would have seen so many people around you explaining how satisfied they felt during the need for unforeseen expenses, they had emergency funds. Also, a lot of personal interviews also claim how difficult it was to arrange to cover expenses at the time of emergency, at the time when they lacked the emergency funds.
Here are the key takeaways:
With emergency funds, you have no fear of job loss, as you are allowed to live for a few months if you lose your job.
There should be a backup of at least three months salary in the form of an emergency fund.
Life is full of uncertainties, anything uncertain can happen to you at any time. The only provision of an emergency fund should always be utilized during uncertain conditions like critical medical issues, unemployment, home repairs, emergency veterinarian bills, etc.
Holding emergency funds is like purchasing an insurance policy without conditions
Just take an idea of insurance policy, in spite of making payment to an insurance company, you are putting your money to use it later. Without thinking of fulfilling necessary conditions or collecting documentation, you can easily access your money if some unfortunate event happens with you.
Sticking to your Goals
With most goals, setting a plan and sticking to it is the finest way to become successful. Here are a few modest tricks you can apply to limit your expenses:
Open an account that isn’t accessible through atm card
Automate transfers to this account from your primary bank account to match up with your salary days, you can’t see the money in your account.
Once you have a sufficient enough sum of money saved in this account, you can shift it to certain high-interest saving accounts, or short-term bonds.
What amount of money to determine as an emergency fund(importance of money)?
Banks & financial experts recommend you should save at least three months of salary in your emergency fund. Depending upon your lifestyle, preferences and income level the amount can vary. First of all note down your living expenses, and make a clear overview of how much you spend every month on rent, vehicle, utility bills, etc.
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