We all have emergencies at the most unexpected or at an inconvenient times in our lives – a family member falling sick, car breakdown or a sudden home repair. Many do not anticipate these emergencies and therefore don’t save for a so called “rainy day.” Instead end up having to depend on a payday loan or line of credit to cover these unexpected expenses.
A survey carried out for Bank of Montreal has revealed that only 24 per cent of Canadians have put a side cash for emergencies, while approximately 56 per cent have savings of less than $10,000 for emergencies.
Those surveyed have also pointed out that expenses relating to medical treatment, car repairs, home repairs and sudden job loss, were considered as their emergencies.
Here’s how you can get started on your emergency fund:
- Set yourself an achievable target and make sure you set aside a small amount from every paycheck.
- Selling off things that you don’t have a need for anymore.
- Get yourself a second job and use the extra cash towards the emergency fund.
An article published by Mortgage Broker News.ca highlights the importance of maintaining an emergency fund.