When Your Emergency Funds Can't Quite Cover Your Expenses

Your emergency fund is a vital part of keeping yourself alive financially. If you don't have an emergency fund yet, put it on the same priority level as your groceries because it will eventually be paying for those emergency groceries soon. This is not an "if" but a "when," as emergencies have a habit of popping up at the times when you're the least ready to deal with them. Your emergency fund should be one of your highest priorities.

How Large Should This Fund Be?

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According to most financial experts, your emergency fund should be large enough to take care of your basic expenses for three months. That's considered a solid minimum, and some people save up enough money for a year or more of all of their expenses. 
While there's nothing wrong with spending money for fun right now, your emergency fund needs to be a priority. If you aren't putting at least 10% of your money into your emergency fund, you're going to have next to nothing when the next financial problem comes around. When that emergency happens, you will have to hope it isn't something severe.

Saving Can Be Hard Work

Unfortunately, saving isn't always easy. While some people earn great income and have inexpensive tastes, a lot of people want to live at the tip of their means, or they're just starting out and haven't yet had enough time to put away very much money. In either case, they don't have as much as they wish they did when something goes wrong. Hence, it is a good decision to save a portion of your income every month to have enough fund when an emergency situation arises. 

Quick Cash is Available

There is a balance between trying to "tough it out" when your emergency funds can't cover your expenses and living from loan to loan. Some people consider it shameful to have to borrow money, no matter how bad and unexpected the circumstances may have gotten. However, those people forget that it is not responsible at all to avoid paying your emergency bills.

If you avoid paying your emergency bills, you might get into a more severe situation. If you run out of money because of an emergency that your slush fund couldn't cover, you'll be in a sorry state in no time. In situations where your fund cannot cover all your emergency expenses, taking out a loan is a responsible idea. It is okay to apply for a payday loan and get cash fast to get you through an emergency case. 

Saving money is the best way to be financially secure. Unfortunately, it's hard to know how much to save, and actually saving money is hard work most of the time. Fortunately, if your savings don't quite cover what you need and the situation gets really nasty, you can borrow money, which you can also repay on your next payday. In moderation and especially during emergency cases, borrowing until you're back on your feet is considered appropriate.