As we now prepare ourselves for an extended vacation during this Lenten season break. Many will travel by land to visit their own loved ones. It will be wise if we check the safety of our vehicle and make sure your vehicle has a spare tire. Why? So that when you experience a flat tire on the road, your reserve tire can allow you to change your flat tire and keep going, allowing you to get where you need to go.
If every car has a spare tire, how come most people do not have a reserve fund, or otherwise called as an EMERGENCY FUND?
Just as a spare tire can come in handy during an emergency, we also need a reserve fund for unexpected emergencies in life.
What is an emergency fund?
An emergency fund is money set aside to be used in an emergency, such as the loss of a job, an illness, or a major unforeseen expense.
“Chinkee, are you saying that we should be pessimistic?”
Not at all!
As individuals we must always think positive, and always anticipate the best in life. However, life does happen and we do not control it. Even if we always want to hope for the best, we still need to prepare for the worst. It is unwise for anyone to not prepare for the unexpected.
As a Wealth Coach, one of the important life skills that I want my clients to learn is to prepare for emergencies. There is a common saying that goes: “If you fail to plan, you plan to fail.”
We need to accept the fact that the bigger our dreams are, the bigger the challenges we will have to face. The bigger the vision, the bigger the opposition. This is something that everyone needs to understand.
You see, being able to foresee and prepare for the unexpected can help your family AVOID GETTING INTO FINANCIAL STRESS.
In the absence of an emergency fund, people usually resort to borrowing money when an emergency comes up. This is one of those things that we never want anyone to experience or to get used to. Remember, borrowing money can easily lead to debt.
Whether we like it or not, there will be unforeseen things that will happen in our lives. Whether it’s an unexpected medical expense or a house repair, there will always be “something” that we never would have seen coming.
Allow me to share with you some of them:
Medical expenses – An injury from playing sports, or a sudden emergency procedure that needs to be performed on a family member
Car breakdown – A broken headlight, a cracked windshield, or a flat tire after a long drive
House repairs – A faucet leak, a broken door knob, plumbing problems or a roof that needs fixing
Special events – Birthdays, weddings, anniversaries, christenings, etc. that you were invited to attend
New clothes – Formal clothes for a gala that you need to attend for work
Sick Pet – Tick bites on your pet dog, or a virus in your pet cat
People requesting for help – Friends borrowing money for a business endeavor, a church missionary asking for support, or a neighbor asking help with his daughter’s tuition fee
Family emergencies – Death of a loved one, or job loss.
All of the things I mentioned, we sure hope that it might not come. But it is sure that it may happen one day. It is better to be prepared rather than to be sorry.
THINK. REFLECT. APPLY.
Do you already have emergency fund set aside?
How many months of emergency fund do you have?
For more info on how you can achieve this, please watch my Youtube channel. Search for Chink Positive.
To avoid further financial stress, please check out my latest book DIARY OF A PULUBI http://bit.ly/2yPVcDf
(Chinkee Tan is a top Filipino motivational speaker, wealth and life coach whose goal is to inform, educate, motivate, and disturb. His vision is to help people become financially-literate and debt-free. For more info about Chinkee Tan, please visit his fan page at FB, Twitter and Instagram. Also follow VIBER PUBLIC CHAT GROUP search chinkee tan, and VISIONCHINKEE on You Tube for more news and encouragements.