fbpx
Potentash
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books
No Result
View All Result
  • Login
Potentash
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books
No Result
View All Result
  • Login
Potentash
No Result
View All Result
Breaking out your emergency fund. Image from https://moneyat30.com/emergency-funds/

Breaking out your emergency fund. Image from https://moneyat30.com/emergency-funds/

Finances: When You Should Use Your Emergency Fund

Mumbe Mutanu by Mumbe Mutanu
October 5, 2018
in Personal Finance
Reading Time: 3 mins read
29 0
0
35
SHARES
194
VIEWS
FacebookTwitterWhatsApp

We are all aware of the concept of being intentional with finances and this includes preparing for a rainy day. Experts believe that an emergency kitty should be able to cover expenses for at least six months when things get rough. On the other hand, not a lot is said about when we should use our emergency savings and therefore most people always end up not utilizing the funds because of anticipating worse things to happen and others use the money for the most trivial things possible. Ideally, there is no set right way to go about it but there sure are a few guidelines to aid in manoeuvring how to use these funds.

What constitutes an emergency?

An emergency fund just like the name it is made for emergencies only. True emergencies are those that are:

  1. Unexpected. This means that there is no way one would have anticipated this happening, for example, the loss of a job is a true emergency. We plan and prepare for life’s worst outcome but nobody is ever truly prepared to let go of a steady stream of income especially if it’s a permanent job. Therefore in cases where the said event is unexpected, your savings come to the rescue. Flooding is an emergency and if your insurance doesn’t cover it then yes, it is time to dip into your kitty.
  2. Urgency. If you can survive without it for a few weeks then most probably it is not urgent and therefore it is not an emergency. Your kids falling sick is urgent and they require medical care as soon as possible. This could also mean not taking care of it as soon as possible means that the situation at hand becomes more expensive.
  3. Necessary. Wants and needs come to play here. Not everything that we want, we need and therefore needs are essentials and should always take precedence as we require them to survive.
Image from https://thisoldwallet.com/how-much-emergency-fund/

Therefore, if it is unexpected, urgent and/or necessary, one can use their emergency financing. It is also important to note that once you are back on your feet, the focus should be on building up your emergency fund all over again.

Notably, not unless it is absolutely undoable, it is paramount that one does not fully empty out their emergency fund even when it is an emergency. This ensures that you have a cushion for the next time disaster strikes if it happens so soon. It is impossible to know when you will fall sick and max out your insurance payments or predict the demise of a loved one and therefore we should prepare the best way we know-how.

image from https://www.bankrate.com/financing/saving-money/jean-chatzky-rebuild-an-emergency-fund/

Do you have an emergency fund? Finances: The Importance Of An Emergency Fund

You should also have a sinking fund which you can find out more about here – 6 Benefits Of A Sinking Fund

Here is How To Manage Finances When One Partner Loses Their Job

7 Common Financial Mistakes & How To Avoid Them

Share14Tweet9SendShare2Pin3
Previous Post

Urban Farming: 5 Great Plants To Grow In Your Kitchen Garden

Next Post

Opinion: In Defense of Romance Stories

Mumbe Mutanu

Mumbe Mutanu

Caroline Mumbe is passionate about anything money related. She is an entrepreneur and writer who enjoys simplifying financial concepts and making sure people lead their best financial lives. She reads a lot and knows the best coffee joints in Nairobi.

Next Post
Romance: Love heart in the sunset Image

Opinion: In Defense of Romance Stories

Please login to join discussion

Recommended

Pearls And Heels: Phyllis Wakiaga

August 15, 2016
3.3k
I love the full moon. Full of possibilities and magical.

Love dance!

November 28, 2012
728

Popular Stories

  • Going through a financial crisis. Image from http://www.todayschristianwoman.com/articles/2010/january/fourprayersforyourfinancialcrisis.html

    11 Life Hacks For People Going Through Tough Financial Situations

    212 shares
    Share 85 Tweet 53
  • The Beautiful Intern Was Shaking Things Up At Work And I Was Jealous

    1 shares
    Share 0 Tweet 0
  • You Have Probably Been Changing Your Baby’s Diaper The Wrong Way. Here Is The Right Way To Do It

    19 shares
    Share 8 Tweet 5
  • My Wife Was Having An Affair With Her Employee Part 2

    69 shares
    Share 28 Tweet 17
  • Single Lady In Nairobi: I Settled For The Wrong Guy Because My Clock Was Ticking And It Cost Me!

    1836 shares
    Share 734 Tweet 459

Potentash Blog

Potentash

Potentash is an award-winning lifestyle blog. We publish lifestyle content that intersects with health, women, beauty, travel, business, relationships, finances and entertainment.

Explore

  • The Singlehood Series
  • From Stairs To Ramps
  • Man Around Nairobi
  • Pearls And Heels
  • Personal Finance
  • Food + Beverage
  • Editor’s Pick
  • Reviews

Get the Potentash Newsletter

  • Newsletter Archive
  • Subscribe
  • Frequently Asked Questions
  • Privacy Policy
  • Contact Us

Copyright © 2023. Potentash, In Partnership with Decima

  • Login
No Result
View All Result
  • Relationships
    • The Singlehood Series
    • Dating
    • Sex
    • Parenting
  • Lifestyle
    • Home
    • Food + Beverage
    • Fashion
    • Interviews
  • Fiction
    • Poetry
  • Skin + Beauty
    • Skin
      • Skincare
    • Hair
      • Haircare
  • Wellness
    • Physical Health
    • Emotional Wellness
    • Mental Wellness
    • Social Wellness
    • Spiritual Wellness
  • Business
    • Business Finance
    • Personal Finance
    • Entrepreneurship
    • Investments
    • Personal Investments
  • Entertainment
    • Internet
    • Events
    • Music
    • Books

Copyright © 2023. Potentash, In Partnership with Decima

Welcome Back!

Sign In with Linked In
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In