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7 Reasons You Should Have an Emergency Savings Account

By Corinne Safford, Senior Retail Manager, Omaha, NE

It’s less than ideal to pull money from a college fund, retirement account or go into debt to pay unexpected costs related to an emergency. Having a financial account designated for emergencies-only is the prudent choice to help protect you from financial stress.

Here are 7 potential financial setbacks, where an emergency fund may help you out.

1. Urgent Medical Care

Even with health insurance, the out of pocket costs can add up for healthcare. A trip to the emergency room or vet has associated costs and an emergency fund could help you cover those unforeseen bills.

2. Lost Cell Phone

This depends on the model, but replacing a smart phone can run several hundred dollars. Back up finances could cover the cost to get you a new cell phone right away.

3. Tree Removal

That mature tree may be becoming a danger to your property or others if it is dead or not maintained. Expenses like this are tough to budget for and emergency savings may be your best source to fund what can be a surprisingly expensive service.

4. Roof Starts Leaking

This ranks high on a homeowners list of nightmares. Although insurance can help in this scenario, an emergency fund will certainly help you sleep better if you start to notice swelling or cracking in the paint on your ceiling or walls.

5. Luggage Disappears

You land in Omaha, but your bags never left Phoenix. Now your meticulously packed bags have become an airline statistic and replacing all of the gear inside could amount to a hefty price.

6. Decrease In Pay

You finally land the job of your dreams, but it comes with a decrease in pay. Or perhaps your hours are cut back at work. With an emergency fund in place, you can help supplement that lost income until you get accustomed to the changes in your monthly spending habits, or find additional income.

7. Car is Making a Funny Noise

A mode of transportation is oftentimes essential to our day-to-day lives. When it breaks down, an emergency fund can be your safety net to prevent debt in the event of major mechanical failure.

Need help building an emergency fund? Consider opening a dedicated savings account and setting up automatic transfers into this account. Have other questions related to emergency funds and savings accounts? Talk to a banker near you today and have the peace of mind to enjoy all of life’s surprises.

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