Emergency Funds: What They Are & Why You Need One

Emergency Funds

Picture this. It’s Wednesday evening, you’re just getting in from another long day at work. Upon turning your house keys and entering what used to be your lovely abode, you’re met with torn up sofas and cushions. In the midst of this chaos is your adorable dog nervously awaiting your arrival 🐶 Now you need a new sofa, basically hell on earth right?! Don’t own a dog? You don’t need to, you get the gist. Emergency expenses can happen to any and everyone. This is where emergency funds come in handy!

What are Emergency Funds?

  • An emergency fund is a stash of money you set aside in case of surprise expenses or personal financial dilemma’s. E.g. Loss of your job, illness, unexpected home repairs or medical bills. Essentially, they are a security blanket making sure you’re covered for any financial surprises. Do I really need one? You ask? We think so. You never know what life will throw your way, it’s best to be prepared now so you don’t have to panic later!

How much money should be in your Emergency Fund?

  • There’s no set amount for what an emergency fund should be. However, the general rule of thumb is to stack up 3 months worth of monthly expenses. It may seem like a large task at first but don’t worry, start off small and watch your emergency fund flourish.

What qualifies as an emergency?

  • Losing your job
  • Emergency home repairs
  • Medical bills
  • Unexpected accidents
  • Car accidents

What does not qualify as an emergency?

  • Booking a holiday (bad luck! 😉)
  • Buying new technology
  • Shopping sprees
  • Wanting to decorate your home/car

Having an emergency fund could put you in the driving seat of your finances. Unexpected costs? No problem! As you planned before the issue arose so now, this will help make you’ve got it covered. Another way you can keep track of your finances is by downloading the Curve App. Not only will you gain access to real-time notifications so you can track your spend, you could also gain 1% instant cashback at 3 retailers (or more depending on the subscription tier you choose) as a 90-day introductory offer.

Check out our table below to see discover what other benefits could be in store for you when you join Curve:

Benefits of using Curve:
Fee-free spending on 200+ currencies with access to competitive rates* (weekend charges apply)
1% instant cashback as an introductory offer for 90 days* 
Go Back in Time, to switch the card you paid with, up to 14 days after purchase*
Advanced encryption technology, instant notifications, and the best purchase coverage*
Worldwide Travel Insurance & Electronic Gadget Insurance (Curve Black and Curve Metal only)**

Download the Curve app to take advantage of these perks now!