Emergency fund: It will save you tons of problems

I am very fortunate to have put some money aside for my emergency fund. Both me and my wife agreed to put some money aside for emergencies just after we got married.

Years went by, slowly our emergency funds grew. At times, I grumbled to myself why can’t I just use this money to invest in stocks. The money in the emergency fund was not even making 0.1% of interest each year. I thought I could have made more money investing. When I started my real estate career, I was so tempted to use the money to boost up my marketing campaigns.

Little did I know, I was very lucky. I did not use the money in the emergency fund.

Stock markets were the first to be affected. It hit a 10 year low. Lucky for me, I was not fully invested.

Then, clients started avoiding me. Many were not eager to sell their houses. They do not want to put their family at risk. Clients who want to buy houses are also not allowed to view houses. I am totally stuck as a consultant serving both buyers and sellers.

The circuit breaker has put a halt on many of my ongoing business transactions. I can’t meet clients. I can’t visit their homes. I can’t bring them to showflats.

It totally just stopped all my current and future sales. Hours and hours of working all went down the drain. I lost money and worst of all, I can’t make back that money during this period.

This is what a crisis is. It can come unexpectedly and suddenly. The whole world was unprepared for what was to come and are still struggling to manage it.

Many of us are still lucky we have a job and have some income coming in.

But when the next crisis hit, we will not know how the situation will be. This crisis hit me really unexpectedly. I thought I was making breakthroughs. But instead, it totally stop my progress.

However, this life journey is not just about me. With the emergency fund, I need not worry about not being able to feed my family. I need not worry about the electricity bills. I need not worry about the mortgage payment. I need not worry about not being able to buy books for my kids. I believe it would kill any of us knowing we can’t afford the basic things for our family. I hate to imagine the day I cannot afford those things for my family.

Having an emergency fund assures me that I will be able to afford these basic necessities for the next year. We may not be able to afford McDonald’s every weekend. But at least, the basic things.

Hence, I highly recommend you to start building up your emergency fund. It is not only for your future but for your family as well.