Member-only story
What REALLY Counts As a Financial Emergency?
It may be tempting to dig into your savings when something you need is a little out of your price range. This is a good opportunity to ask yourself: “do I really NEED it?”
The whole point of having an emergency stash of money in your savings is for those moments where you simply CANNOT move forward until you shovel out some money. Not being able to afford some of your optional groceries is not an emergency. Maybe focus on the necessities instead?
So what does count as a financial emergency?
Your Car Breaks Down
Most of us have been there, stranded on the side of the highway with a busted vehicle. The cost of towing without insurance can cost upwards of $300 just for the trip home or to a dealership or shop. Then you have to worry about the expenses of fixing it up.
If you’re lucky, your car insurance covers your towing completely and your car is still under warranty, which means (in most cases) a free fix at the dealership. This doesn’t always work out, though, and prices for car repair are steep.
A Medical Emergency
The U.S. Census Bureau determined that 27.5 million Americans are without health insurance. Even the simplest procedures and check ups are pricey without insurance so many of you who encounter…