Have you had any unexpected occasions before?
An unexpected medical emergency, a broken faucet, a drainage blockage, or a leaky faucet, you cannot fix yourself or you have to go to someone for help. Then, you felt lucky you just had some extra cash in the bank to cover the expenses or you have to spend a little over the budget to cover it.
Ask anyone who’s had a flat tire, a leaky roof, or an unexpected medical bill – having enough money tucked away in an emergency fund can prevent a lot of headaches.
It may seem obvious to create a cushion for unexpected expenses while you’re saving up for retirement, especially if you have kids that need to get to their soccer games on time, a new-to-you home that’s really a fixer-upper, or an injury that catches you off guard.
But an emergency fund is still important to keep after you retire!