Everyone needs an emergency fund because you never know when you or someone in your family will get sick, have an accident, lose a job, get divorced or have some other problem. When bad things happen, you often need to have cash on hand so you can deal with them without going into debt. That’s the point of an emergency fund — to make sure you have the cash you will need in an emergency situation. Think of it as a small insurance policy you give to yourself.
If you don’t have an emergency fund, you aren’t alone. According to a recent study, 25% of Americans (or 77 million people) do not have emergency funds. Since you never know when an emergency will happen, one of the best things you can do for yourself and your family is to start building your emergency fund. It’s a lot easier than you think!