Having an emergency fund is boring.
You can think of a hundred better things to do with your money than have it sitting in a savings account doing nothing.
You’re not alone. In fact, over 55 million Americans have no emergency fund at all.
In other words, most people can think of something more exciting to do with their money than leave it in a bank account.
But having an emergency fund is critical to your long term financial health. Heck, it is critical to your mental health too!
And I can prove it.
Around 10 years ago, I bought my first house. I got in over my head and was living paycheck to paycheck.
I had nothing saved in the bank, so I counted on my paycheck every two weeks.
During that summer, I came home from work and my house was abnormally hot. I thought I had just forgotten to turn on the air conditioner since it had been cooler than usual the previous few days.
Sadly, I did have the air conditioner turned on. It wasn’t working.
I called up a repairman and found out that my unit needed to be serviced.