I have some money in the bank, so I don’t need an extra fund for emergencies. Sound familiar? Just because you have some money somewhere does not mean you are prepared for an unexpected event. “More than half of Americans (or 51 percent) have less than three months’ worth of expenses covered in an emergency fund,” according to Bankrate’s July 2021 Emergency Savings Survey. “That total includes 1 in 4 Americans (or 25 percent) who indicate having no emergency fund at all — up from 21 percent in 2020.” The team at American State Bank is here to share the following reasons on why emergency funds are crucial.

Own A Home or Car

If you own a home or car, we can confidently say you will have something happen to one of those things in your lifetime – and it will not be cheap. If your air conditioner or furnace breaks, you are automatically out thousands of dollars. Any one of your appliances could stop working and not be able to be fixed. If your car breaks down and needs a specific part, you are out hundreds of dollars. A new car tire may be easy to pull money from another account, but you won’t always have something happen that only costs a few hundred dollars. Cars and homes mean potential thousands out of your pocket instantly when something goes wrong.

Single Income Only

If you are a single-income household, you only have yourself to rely on. If any of the items happen that are listed in this blog (job loss, medical emergency, etc.), you have no one else to fall back on for another income while you figure out next steps.


If you are self-employed, you are paying for your own healthcare plan which can be pricier already for you than when you are through an employer. If something happens with your business, legal battles, or things along those lines, you’ll have many unexpected and large expenses to pay.

Medical Issues

If you are currently living with medical issues, you already know the extra healthcare costs and unexpected visits to the doctor that come with that. You’ll want to have an emergency fund to be able to pay for those unexpected situations and other cases that pop up that don’t even include your health. For others, you unfortunately never know what could happen. A car accident, emergency or cancer could occur, and you’ll want to have extra money ready to spend for those situations or to use as income for a few months while healing.

Job Loss

Unfortunately, you or your partner could lose your job. This takes you down to a single- or zero-income household instantly. Having an emergency fund ready to use while looking for another job is crucial, so you aren’t dipping into your regular savings or checking account that is meant for your normal monthly expenses and bills.

We hope after reading this blog that you feel the push to add to or start your emergency fund. You don’t want to have to pull out thousands of dollars from your checking or savings account when the unexpected happens. Feel safe and comfortable knowing you are prepared, so you don’t have to panic, not if, but when something happens.