7 Reasons Every Woman Needs An
If we’re being honest, saving money probably isn’t at the top of your priority list, but it should be. (Don’t believe me? Check your bank statements. They don’t lie.)
Think about it, how many times has something unexpected popped up and you didn’t have the funds to take care of it?
It may have been a flat tire, a new educational program, or a vacation with friends.
As a woman, when you know you have money in the bank, you move different. Your very existence exudes wealth, power and confidence.
Not having an emergency fund could jeopardize all of that. It only takes one unexpected expense to wipe out your finances and all of your hard work.
Below, you’ll find some concrete reasons why you should make having an emergency fund a top financial priority.
1. Medical bills:
It’s no secret that medical care is outrageously expensive in the United States. A simple out-patient operation might only take 30 minutes but it can easily cost $15,000 or more.
Even if you have insurance, you could still be on the hook for a deductible of several thousand dollars.
This is one financial dilemma that people hardly ever think about until it’s too late. And it’s especially important for entrepreneurs, many of whom have zero health insurance at all.
In this case, that emergency fund would be clutch.
2. Automobile repairs:
I don’t know if this is a woman thing or a Tasha thing but… I don’t like managing my car.
Don’t bother asking me when my last oil change was because I really don’t know. This is the one area of life I’m a real damsel in distress! Sue me.
If you have a car you should be saving to repair it. But if all else fails, having an emergency fund to take care of unexpected expenses really comes in handy.
I’m about to share a major cheat code right now:
After you’ve paid off your car, don’t get another one!!! Continue making the payment to yourself. Save the money for future repairs or your next automobile.
At some point, all cars become more expensive to fix than they’re worth. Ensure that you have the funds in place to minimize the amount of debt necessary to get a new car or simply buy one outright.
While I don’t wish this on you at all my love, the reality is that people get fired everyday. No one wants to think about it, but you could lose your job at any time so be prepared.
This is especially important for women because we are often taking care of children, parents, and more.
Last year, I watched three 6-figure earners struggle after losing their jobs. None of them saw it coming and guess what… none of them had enough money saved.
And remember those times the government shut down?
When that happened, millions of employees stopped getting paid with several ending up in food banks. So much for government jobs being a safe and steady source of income.
So yeah, stay ready because no one is safe.
4. Major home repairs:
Replacing a roof, a/c unit, furnace, repaving the driveway, or replacing
appliances can cost more than the average homeowner has sitting around in their bank account.
And homeowners insurance doesn’t cover everything.
One time, I had a client who had two rental properties and during the winter the pipes burst on both at the same time.
Her emergency fund was a life saver.
5. Funeral expenses:
Funerals are expensive. And even if you don’t have to pay for a funeral, you may have to travel across the country to attend one.
Deaths are often unexpected, It’s hard to talk about let alone budget for. To tell the truth, I feel awkward even putting it on this list.
But we have to face these things head on.
If there’s one truth in life, it’s that everyone dies eventually. There’s no escaping it. So do your part by making sure that you and the people in your life are prepared in every way.
6. Dental expenses:
A broken tooth, braces for the kids, too many teeth, not enough teeth, or a mishap with a baseball can cost more than your bank account will support.
I was talking to this woman the other day and she was telling me about her families camping trip. Well, she got spooked in the woods, started running, fell and knocked her tooth out.
Sis… my jaw was on the ground.
While your health insurance might be great, most dental plans leave a lot to be desired, especially with regards to cosmetic issues so you definitely want to be prepared.
7. Bad Relationships
In society, men have traditionally been the bread winners. This isn’t necessarily a bad thing, unless it means you have no resources of your own. Lack of finances are a huge reason women tend to stay in abusive or unfulfilling relationships.
Having your own emergency fund gives you a chunk of change to fall back on in the event your relationship doesn’t work out.
Some women think that having a separate account means that you’re going into the relationship expecting it to fail. Not true.
My motto is to plan for the best, but always be prepared for the worst.
Are you convinced yet? I know it’s hard to think about the future, but learn from this list of mistakes so that you can avoid them.
Here’s how you can easily get started:
- Set aside a percentage of your income in a specific account and seek to increase that amount over time.
- Make your emergency fund a priority and cut back wherever you need to in order to get it to $500-$1000 ASAP.
- Aim for at least six months of living expenses. That will be enough to handle most financial emergencies.
One financial mishap can easily undo years of your hard work, and I don’t want to see that happen. The best time to start an emergency fund was 10 years ago. The second best time is right now.
Do you want to learn our proven process for creating an emergency fund, becoming and investor and so much more? Check out our Wealth Academy Program.