From Women Who Money …
You’ve probably heard the mantra “hope for the best, prepare for the worst.” This is true when it comes to having an emergency fund. As much as we can hope for the best, we are going to face emergencies from time to time. This makes it critical to build an emergency fund and be financially prepared for unexpected expenses.
Most people rely on credit cards as their emergency fund. Credit cards seem like a solution to an emergency at the time, but in reality, they create a vicious cycle of debt dependence. It means that you could be making payments- with interest- on groceries you bought more than a year ago!
Having an emergency fund gives you a safety net and puts you on the right track to financial stability and building wealth. It could potentially save you from bankruptcy or other financial disasters if you suddenly lost your job.