Four Reasons You Need Emergency Savings

Just when you think your financial challenges are in the past, you get hit with a big bill out of nowhere. What do you do?

The optimal solution is paying the expense in full, or paying a significant part of it. The easiest way to be prepared to do so is with emergency savings. Following are four reasons -- expenses that commonly strike out of the blue -- that are a great reason to have emergency savings:

1. Emergency Medical Care

You accidentally cut yourself preparing dinner in a way that requires stitches or your child is hurt on the playground at school, so it’s off to the emergency room.

According to Costhelper Health, “For patients covered by health insurance, out-of-pocket cost for an emergency room visit typically consists of a copay, usually $50-$150 or more. Depending on the [insurance] plan, costs might include coinsurance of 10% to 50%.” Whether you’re at the low end or high end of coinsurance, the bill could be tough to pay if it costs several hundreds or thousands of dollars.

2. Extended Sick Leave

Extended sick leave is often associated with chronic ill health, but even a case of pneumonia could put you in the hospital for a few days and require days of bed rest when you return home.
After you use sick days, how do you get money to pay bills until you recuperate? If you have a well-funded emergency savings account, it’s a question you shouldn’t have to answer.

3. Wrecked Automobile

If an accident makes the next trip your vehicle takes to the auto repair shop, emergency savings are an ideal way to cover your deductibles.

4. Special Event

Near Valentine’s Day, we often see commercials satirizing how people forget about the important event until the last minute, when they have to spend a large chunk of change on flowers, a dinner reservation, and a romantic gift.

It’s embarrassing when things like this happen, but it’s even more embarrassing if you don’t have emergency savings to bail you out. Your significant other may forgive you, but would he or she ever forget?

Funding Emergency Savings

Emergency savings minimizes the stress of addressing unexpected expenses, but only if you have enough saved. American Eagle Credit Union will help you choose an emergency savings account and savings plan that you can afford and depend on to pay expenses that strike suddenly.

To get started on opening an emergency savings account, call us today at (877) 325-2848, or send us an email through our contact form. We look forward to helping you plan for the unexpected!


 


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