What is an Emergency Savings Account for?
An Emergency Fund is what we refer to as the money you set aside to prepare for unexpected expenses, like urgent vehicle maintenance, job loss, veternarian visits, and health problems that result in missed work. You'll likely deal with at least one situation that requires funds fast or a drop in income at some point in your lifetime. These surprises usually don’t give you enough time to adjust your budget. That's where an emergency fund comes in! Setting up an Emergency Savings Account makes it possible to:
Handle an unexpected expense without going into debt
Avoid high-cost loans (like pay day loans or credit card cash advances)
Avoid incurring costly credit card interest rates
Have financial control and peace of mind