Having a positive flow of funds in your household is extremely important for your family’s quality of life. It’s been said that money can’t buy happiness. However, currently being able to pay your bills and feed your family is the best way to keep them happy. Equally important is setting up an emergency fund with the best fixed deposit rates so that you’re prepared for the unexpected.

It’s very easy to get a savings account in order to build your emergency fund, but so many people don’t do it. Let’s discuss a few things that can happen in your life that might make you regret not opening an emergency fund.

1. Sickness or Injury

If you or your spouse gets sick or injured and must miss work, not having some rupees stashed away can be costly. Not all professions provide sick leave, and even if you have insurance, the medical bills could run you anywhere from 2,000 to 20,000 Rupees.

2. Career Change (Good or Bad)

Lose your job? Now you need to spend time finding a new one. Get a new job? Excellent! Now you need to somehow keep paying your bills until you get your first paycheck.

No matter the change, having an emergency fund in place can help keep you afloat until your income becomes positive again.

3. Car Breaks Down

Even well-maintained vehicles break down eventually. Tire goes flat, engine overheats, or the brakes go and suddenly you can’t drive your car. Depending on what the issue is, you could be looking at a car repair bill of about 3,000 to 20,000 Rupees (or more). Without an emergency fund, you may not be able to go to work, which means your income stops.

4. Something in the House Breaks

Owning a home comes with its share of frustrations. Nothing is more stressful than needing to make unexpected repairs on the roof or porch, or learning that you need to buy a new refrigerator. These things can be very expensive to take care of, especially if you don’t have an emergency fund in place. For instance, a new refrigerator may run you over 12,000 Rupees. Without an emergency fund you’ll either go into debt to pay for it, or you’ll be without a new fridge.

5. Family Emergency

Having a family emergency is the last thing on anyone’s mind. It’s hard to think about a beloved family member dying or becoming seriously ill. When it happens, though, not having an emergency fund means possibly not being available for your family when they most need you.

Conclusion

Making sure that you and your family has an emergency fund in place can make your life much easier should any of the above situations come up. Even travel costs for unexpected family emergencies, though relatively cheap (roughly 50-350 Rupees), can eat into money you may need for bills and food. If you have an emergency fund in place, though, you won’t need to worry about that.