{"id":2753,"date":"2020-07-04T11:08:36","date_gmt":"2020-07-04T10:08:36","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=2753"},"modified":"2023-03-10T11:50:18","modified_gmt":"2023-03-10T10:50:18","slug":"emergency-fund","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/emergency-fund\/","title":{"rendered":"[NEW] Introducing Emergency Fund: Stay Ahead of Life"},"content":{"rendered":"\n
\"emergency<\/figure>\n\n\n\n

Now, more than ever, we are reminded why having an emergency fund is important. You could lose your job, have a medical emergency or a global pandemic could upend your life. Either way, an emergency fund will be the reason why you have a security net that provides you with room to make your next decision.<\/p>\n\n\n\n

At Cowrywise, we believe in flexibility and providing our customers with diverse options. Yet we did not have a dedicated emergency plan. Sure we have Money Market Funds and Stash which are immensely flexible and funds can be accessed at any time. After much user research and feedback, we learned that there was a big gap that we could help bridge. Thus our new feature, the emergency plan<\/a>, was born.<\/p>\n\n\n\n

In this article, we will cover:<\/p>\n\n\n\n

1. What is an emergency fund?<\/a>
2. Why should you have an emergency fund?<\/a>
3. How does the Cowrywise emergency plan work?<\/a>
4. How to set up your emergency plan<\/a><\/p>\n\n\n\n

What is an emergency fund?<\/h2>\n\n\n\n

An emergency fund is a pool of money which is set aside specifically to cover the financial surprises life may decide to throw your way. Everyone knows that there\u2019s really nothing worse than having an emergency suddenly occur and not having the funds to cover them.<\/p>\n\n\n\n

By building up your emergency fund, you can be prepared to pay for unexpected emergencies without having to turn to loans or other borrowing options that create unnecessary stress. While an emergency fund won\u2019t solve all your money problems, it\u2019s a great start to getting your finances headed in the right direction.<\/p>\n\n\n\n

Why should you have an emergency fund?<\/h2>\n\n\n\n

Having a robust emergency fund gives you peace of mind. No one wants to live one paycheck away from not being able to pay the rent or one car breakdown away from not being able to get to work. It can also be a way to prepare you for something as sudden as the global pandemic like these six Nigerians we spoke to<\/a>.<\/p>\n\n\n\n

It also gives you some freedom. If you decide to leave a relationship or your job becomes so unbearable that you have to leave before finding another or you want to go back to school or start your own business, having an emergency fund gives you the freedom to do those things.<\/p>\n\n\n\n

Keeping that money separate from the money you use to pay bills or other financial goals you have can help you resist the urge to spend it on other things. Sometimes when you see a big number in your bank account you get a little too quick to purchase things you really do not need. Keeping this money separate can help you avoid temptation.<\/p>\n\n\n\n

Here is a 1-minute video that explains why you need to build up your emergency fund.<\/p>\n\n\n\n

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