woman sitting on the road and calling for help during sunset on summer day, somewhere distant and remote. Her car is in background broken.

3 reasons why an emergency fund is so important

Every so often, life throws us a curve ball, but sometimes we miss that curve ball and it hits us in the face. Having a super saver or “emergency savings account” can rescue you from so much stress and injury to the face, and here’s why.

A survey launched by the Australian Securities and Investment Commission found that half of all people aged 18 years and over reach into their savings account when something unexpected happens – whether it is fixing a car, sudden health problems or unexpectedly needing to buy a new computer for “work”. Instead of leaning on your savings, why not create a separate account especially for emergencies? An emergency fund account with Police Bank can set you up for success.

Here are three reasons why having one is so important.

1) Car Problems

Owning a car is similar to looking after a small child. It needs fuel, it needs to be clean and, most importantly, it needs to be healthy. Creating an emergency fund will ease your mind if anything ever happens to your vehicle.  According to ABC News interview with spokeswoman for Choice Erin Turner, she stated that two thirds of all car owners find fault with their car within the first five years and that one in six cars that break down will not be able to be driven again. The unpredictability of vehicles means you must be prepared should anything go wrong.

2) Health problems

Think about the likelihood of you having to visit the hospital this year. Although hospitals are free in Australia, would you be able to pay for rehabilitation or for follow-up appointments should you need them? Statistics published by Australian Parliament say that the amount Australians spend on out-of-pocket health issues has steadily increased over the past 20 years. Society is paying more and more each year on their health that is not compensated by the government.

3) Broken technology

Our daily lives rely so much on technology to get us through the day. Imagine if one morning you were without that iPhone or computer? Tapping into your emergency funds could be the answer. Apple Support quotes that breaking the screen of an iPhone will cost you at least US$200 if you don’t have phone insurance. Could you afford to be out of contact with your colleagues, family and friends?

Get in touch with the team at Police Bank and see how our special saving schemes can help take the stress out of any financial emergency that comes your way.