You need to have an emergency fund no matter what.

It doesn't matter if unexpected situations arises or not, it is important you have an emergency fund always.

Not having an emergency fund is like having no savings for emergency situations. It is meant to help you when you have an emergency situation.

Here are reasons you need an emergency fund.

1. You are saving towards a goal

If you are working toward a goal like owning a home or starting a business, your emergency job can stop you from dipping into those savings when unexpected expenses crop up.

This can prevent you from moving backward with these goals.

Although your progress forward may slow a bit as you rebuild your emergency fund, you will be able to leave the money that you are saving for you.

2. You  just started budgeting

When you first start budgeting, you may be leaving out some of the expenses that you need to plan for.

Your emergency fund can cover some of these expenses the first year, and then you can add those expenses into your budget as they come up.

This could be annual expenses like taxes or other items like gifts or fees for organizations. Your emergency fund can help you as you adjust to your budget.

3. You only have one source of income

If you only have one source of income, it is essential to have a substantial emergency fund.

This can help you get through an unexpected job loss or illness that keeps you from working.

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If you are single or if you the sole income provider in your family, you should work on having a year’s worth of expenses saved up.

You can build up the larger emergency fund after you get out of debt.

Build up your emergency fund as quickly as possible.

4. Medical issues

Medical issues can be quite expensive. A serious medical condition can cause you to max out your deductible each year.

You may have routine tests that add up quickly. You may also use all of your sick leave and end up taking days off with no pay.

A well-funded emergency fund can help you deal with these costs and make it easier to get through these challenging times.

5. Trying to get out of debt

Your emergency fund can help you get out of your debt with each bump in the road.

An emergency fund can help cover the things you don’t budget for like car repairs or medical costs.

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You can use your emergency fund to handle these stressful events and make it easier for you to stay focused on getting out of debt.

It is easier to pay extra money on debt right away when you have a cushion for unexpected expenses.

Include your emergency in your budget until it is fully funded.