Recently, I spent some time working with a client and we were talking about building an emergency fund. That fund, sometimes known as a rainy day fund, is in place to help us get through troubling times and survive. Those troubling times come under many variations. A job loss, loss of a family member, a reduction in salary, the loss of a major appliance, a fire, a major illness – and the list can go on and on. All of us have examples of what may be classified as an emergency.
As we discussed this, I made the statement that I am not paranoid, but I am just prepared. Having an emergency fund in place will NOT prevent emergencies from happening, but that fund being in place definately changes the way that we approach the impact of the situation.
Many Americans have experienced emergency conditions in the last year or two. Many never fathomed the thought of taking furlough days. They never thought that they would get sick. They never imagined not being able to make a mortgage or car payment. Reality is tough!
Emergencies are going to happen – in your life and mine. How prepared you are for them will direct how you attack them. Are you prepared? I am, but I am not paranoid.