Last week we discussed the first of the “three costliest money mistakes” according to Shape Magazine. This week we will look at why not having an emergency fund set up is another big mistake you can make.
If you have an emergency or get sick, how do you plan to pay for it? Or what if some inevitable incident happens, like say you run over a bag of nails and have to get new tires. That is not cheap!
If you say you are not planning on this to happen – well no one is! If you don’t have an emergency fund set up and opt to pay with a credit card if this situation ever comes up, you will be paying way more because of the interest than if you had the money saved! Also, if you open a savings account, the money will grow. So whether you use it right now or not, it will continue to accumulate – which is a win-win!
As you can see, opting out of an emergency fund is a big mistake. And a costly one! So be prepared and start saving for an emergency now!
Have you had an experience where you needed an emergency fun? Or maybe you had one and were able to use it! Post your stories or comments below!
And check back next week as we discuss the third and final costliest money mistake.