Saving part of your income on a regular basis may sometimes seem to be an unnecessary step that just deprives you of having the things you’d like now. But there are instances when a savings pad may be what saves your bacon in an emergency.
A bankrate.com survey in June 2015 discovered that 29 percent of Americans have no savings at all. They could learn from the personal stories shared by Americans who found that their savings suddenly meant all the difference to their personal finances.
Claes Bell is one of those. It happened under very ordinary circumstance, he related. Those who make Florida their home know that heavy, long-lasting rain is a reality in that part of the country. “It’s sudden and loud and so thick you can’t see much past the end of your driveway,” Bell recounted.
The Bells knew that the roof on the home they bought was 25 years old and becoming a problem, but they’d put off repairs. So when the next storm arrived, they were dismayed but not surprised to hear dripping in their bathroom and find a stain on the ceiling that let them know where the rain was getting in.
Bell tried stop-gap measures, including a sealant, but the drip kept occurring during rainstorms. It became obvious that the only real solution was a new roof. In a poor realty market, the chances for a line of credit or equity loan seemed remote. That’s when the Bells’ emergency fund became the factor that saved their finances.
“Thanks to the sluggish market for home repairs, we were able to get a deal on the roof that allowed us to just cover the cost with our emergency fund,” Bell wrote.
Using up the fund was painful, but it served the purpose for which the family established it. They were able to repair their home without incurring budget-busting debt. They were safe and comfortable, even knowing that Florida’s rains would continue to fall. Starting a new emergency fund was at the top of their priority list.
Thousands of such stories should be impetus for that huge group of Americans who continue to shun saving as a vital part of their budget. As the Bells could tell them, savings and safety are words of a feather.
