Intro
The cost-of-living crisis has engulfed Canada. More people than ever are pushed to the brink of their financial capabilities. An emergency fund is important for several reasons, which are listed below. We will also provide some tips on building such a fund. Your future self will thank you.
Data shows that almost half (49%) of Canadians have no savings for an emergency while 53% rely on their next paycheck to cover emergency costs. We will show you why and how to avoid being part of those percentage groups.
Reason #1: Life Is Unpredictable
You cannot anticipate every emergency. From job loss to a medical emergency, life is filled with unpredictable events. As the saying goes, it’s better to be safe than sorry. Having an emergency fund will buffer you against life’s unforeseen setbacks.
It’s important to start building your emergency fund as soon as possible. According to the latest MNP Consumer Debt Index, over half of Canadians (51%) are just $200 away from being unable to meet their financial obligations each month. A single mishap could cost far more than $200 – whether it’s an urgent car repair or a medical bill. This statistic suggests the level of precarity many Canadians experience in our volatile economy.
Reason #2: Protection
If you don’t have an emergency fund, you may be caught completely off guard. You may run out of financial resources. Unable to cover sudden expenses, you may go deep into debt or even be forced to file for bankruptcy. If you’re unable to keep up with your rent or mortgage payments, you may even lose your home. Therefore, it’s important to have some money set aside. You want to be prepared for a possible loss of income or another emergency.
Should you experience a cash shortfall, Crediteck could help! Online personal loans are becoming increasingly popular throughout Canada as a means to obtain financial assistance. Apply online and get connected with online lenders across Canada today. You don’t need a good credit score to apply as we do not check your credit score or credit report during our online application process – another great reason to choose online personal loans with us.
Reason #3: Peace of Mind
You will have more peace of mind knowing that you’re prepared for life’s challenges. Peace of mind can be hard to come by in today’s difficult economic times. When you experience that peace and relaxation, you never want to go back. Having an emergency fund will go a long way toward ensuring that you enjoy a greater peace of mind and a more positive mindset throughout the day.
How to Build an Emergency Fund
Perhaps the number one method to accomplish this goal is to create a budget. Set some money aside each month and aim to have at least three months’ expenses saved up. Even if it’s one hundred dollars per month, the amount will steadily accrue over the months and years, and you will eventually have enough money saved up to cover emergencies. Consistency is key here – without consistency, you will not experience that slow-but-steady accrual over time. Once you get to your goal, however, a greater sense of safety and security will be a reward in itself.
In addition to building an emergency fund, monitoring your credit score is essential for maintaining good financial health. Register online with Credit Verify to check your credit score and credit report. Stay on top of your finances with Credit Verify!
Conclusion
An emergency fund is a must in today’s volatile economy. Start building yours today. Don’t put it off – even a small monthly amount will make a huge difference in the end. It will give you greater peace of mind and help protect you against life’s uncertainties.
If you’re facing expenses that you can’t cover, Crediteck has your back. Apply online now and get linked with online lenders across Canada. A personal loan offers the benefit of a longer repayment term, rather than just getting you to your next payday as with payday loans. It’s never too late to take charge of your financial future. Start now.
