Why You Need to Invest in an Emergency Fund Today

People consider their 30s to be the prime of their lives – it falls right in the middle of working hard to establish yourself and preparing for retirement. It’s the only decade of your life where you don’t have to think about what the future holds because you’ve already tied a bell around its neck. 

invest money

When you’re at this juncture of your life, it might be difficult to imagine why you might ever need an emergency fund. 

It is a misguided belief that emergency funds are only ever needed when you’re short on funds or when you’re preparing for a possible crisis. Not every “emergency” has to be a life-altering event from which you would never recover. More often than not, what constitutes an emergency might just be a wayward hospital bill. 


Although I do encourage all the readers to always be prepared for the most dramatic situations – I believe prevention is better than cure, sue me – it’s important to note that an emergency doesn’t always have to be a near-death event at all. Sometimes, an emergency can just be a sudden expenditure you couldn’t reasonably foresee. And it is precisely for this reason that you should invest in an emergency fund as soon as possible. 

Your emergency fund will help you to cope with and overcome any sudden financial blows you may face in life. The main goal of investing in an emergency fund is to safeguard yourself against debt. 

Every one of us is bound to face some unfortunate life events that will leave us devastated and in tears. Dealing with emergencies like this is the primary need for an emergency fund:

  • An unexpected medical emergency in the family,
  • Death of a loved one leading to funeral expenses,
  • Losing a job or livelihood,
  • Crisis in the family, among other things. 

Big, life-changing events like these already come with their own set of consequences. If you’re unprepared to bear the cost of events like these, it may become twice as traumatizing and not just for you but for your loved ones as well. 

Going into debt as a result of paying for a dear one’s cancer treatment can have disastrous effects on your family life, your health, and the well being of your entire family. 

However, there might also be some smaller but equally unexpected events that can be assuaged with an emergency fund: 

  • Pet-related medical expenses,
  • Moving from one state to another on short notice,
  • Car troubles,
  • Losing disposable income, among other things. 

If you try to face situations like these with no preparation or planning, they will add to your debt. 

While these incidents might not be major enough to tip your life into total disarray, they can affect your finances badly enough that you might have to cut down on certain expenses you were able to easily afford before. This could lead to a shift in lifestyle, and such changes can be quite hard to adjust to, especially if you have children in your family. 

If you’re wondering whether to start investing in that emergency fund now or two years later, my advice would be to start as soon as you can. Like I always say, it is never too early to plan a safe, secure, and hassle-free future.

Why is Investing in Yourself so Underrated?

guitar

When we start earning, we buy things that we have always wanted. Rightly so, you have earned the money, so you have earned the right to spend it. But, while buying all the things we have ever wanted, we just get ourselves momentary happiness… most of the time, at least.

Like it is important and symbolic for us to buy things we have always wanted, it is as important to spend money on things that we have always wanted to learn too.

One of the things that I recently bought was a guitar. I have always wanted to learn drums actually, but I never got to get drum lessons no matter how strong my case was for learning it. That disappointment of not getting an opportunity to learn something that I craved so much stayed on. 

One day I was on Amazon looking for a gift for a friend. I came across a lightning deal for a guitar which seemed really cheap. I considered buying it. I told my friend about it, who then enquired in a guitar shop close to his place.

The person there told us about how harmful cheap guitars can be for beginners because they get used to the sounds not sounding right, and it is important to learn the actual sounds in the beginning. I knew if I didn’t buy a guitar right then, then I was going to hesitate later.

I got changed, took the train to my friend’s place, and spent a couple of thousands on this guitar in the picture. The picture is from when we bought the guitar back home from the shop.

There are times when the last thing you want to do is spend any more money on things that can easily be put off. And spending money on ourselves is one of the expense areas that is ditched first whenever we tighten the ropes on our budgets.

Budgeting should include things that are truly dispensable, like if you’ve gone through your entire clothing budget for this month, then you shouldn’t buy another pair of shoes just because they’re on sale. However, if an opportunity comes up that will benefit you in the long-term, then it may be worth the investment – YOU are always worth the investment. 

Take for instance, if your job gives you an opportunity to take on some training for an upcoming promotion, but it means traveling out of town, it makes sense to take out a cash loan now, so you can reap the rewards in the long term. 

One of the key questions you should ponder over when spending money is how it benefits you, not only money-wise but in all areas of life. Whenever you need to decide whether you should spend money, ask yourself how it’s going to benefit you in the future. It will make the decision easier for you.

The main element you need to keep growing is to keep learning. The more you learn, the more you grow. Learning shouldn’t be based only on how the knowledge or skill will help you professionally, but something that can help you personally holds the same amount of importance.

We often are so busy adding on to our skillsets in our CVs that we forget to learn and live outside the two-page description of our worthiness. Instead of writing “Reading, Listening to music, or a general thing,” you could actually write about your hobbies that you spend ACTUAL time, ACTUAL money, and ACTUAL energy on.

Knowing things helps us connect with like-minded people. Making connections and socializing becomes easier if you have various interests to talk about. That being said, taking on things just because people seem to be doing it or it is the new hip thing isn’t right either. Invest only in things that genuinely tickle your fancy. 

Final Thoughts

Investing in yourself will take you a long way without stressing about how to make the journey. Don’t hesitate to shell out money for things that make you happy or help you learn new things. The point of earning is to make our lives better, and that means improving the quality of living rather than having a ton of expensive things. The experience stays, expenses vanish.