The Ascent is reader-supported: we might earn a payment from provides on this page. It’s how we make money. But our editorial integrity ensures our experts’ views aren’t influenced by compensation. Have you considered these consequences of not actually having an urgent situation investment? Do an emergency is had by you fund that covers three to 6 months' worth of living expenses? You could end up wishing you were better prepared when an inevitable emergency comes up if you don't.
Unfortunately, emergencies are a definite reality of life that can happen to anyone at any time. If you have put three to 6 months of bills in a high-yield checking account that you are able to access when needed, you will be financially prepared for whatever life throws the right path. You could come to regret that if you haven't saved for unexpected surprises, though, there are three big reasons.
1. You need to cope with added anxiety in a situation that is bad
Emergencies are undeniably stressful. All things considered, an urgent situation is an unexpected negative life occasion that you'll want to deal with right away. When you're handling problems such as a car breakdown, task loss, or medical crisis, you wish to give attention to addressing the issue at hand -- like locating a new job or obtaining the quality care that is best.