You think you have everything that you need to work remotely. You have an ergonomic office setup with an adjustable desk and a top-of-the-line office chair. You have noise-canceling headphones so that you can block out any sounds of your noisy neighbors — and the occasional noisy housemate. You have a coffeemaker sitting in your kitchen, ready to provide you with plenty of fresh cups to keep you energized and motivated throughout your day.
What else could you possibly need when you work from home? You need an emergency fund.
The Importance of an Emergency Fund
Why would you need an emergency fund when you work from home? The simplest answer is that it can help you quickly recover from emergency expenses that ruin your workday. You can withdraw the necessary savings from the account to pay for any essential services, repairs or replacements and then move forward.
What Can You Do Without an Emergency Fund?’
If an emergency expense crops up while you’re working from home, and you haven’t put together an emergency fund just yet, don’t panic. You still have some options to respond to the problem immediately, even when you don’t have enough savings on hand.
You could put the charge onto your credit card as long as your balance is nowhere close to the limit. If your balance is high, you should avoid this solution. It could push your balance to the point that it’s very difficult to pay off, or worse, it could max out your credit card entirely.
Another option is to apply for an emergency loan online. If you meet all of the qualifications for the online loan, you can fill out an application and see whether you get approved. If you’re approved, you can use the borrowed funds to pay for the expense quickly and then manage repayments later on.
When you’re applying for online loans, make sure that they’re available in your home state. For instance, anyone who lives in Santa Fe will specifically want to look for loans in New Mexico to deal with an emergency. You don’t want to waste your time looking at options that aren’t accessible in New Mexico at all.
What Kind of Emergencies Do You Need to Plan for?
Think about it. When you work in a corporate office, and your computer stops working, you can call the IT department to take a look at it. If they can’t fix it, they’ll find you a replacement in the office so that you can keep up with your projects. That can’t happen when you work from home. If your computer breaks down, you’ll have to rush to a repair shop and pay for the fixes or replacements yourself.
Tech breakdowns aren’t the only emergencies that can put your workday on hold. Since you work at home, house-related problems can do the same. If your only bathroom’s toilet overflows, you’re going to need a plumber to fix it immediately. If you notice the signs of a mouse infestation, you’ll want to call pest control. You can’t ignore these problems until the weekend. You have to react right away.
Emergency funds can help you with other urgent expenses that don’t fit inside of your budget, like when your car stalls in the garage, and you need to bring your car to the mechanic to get it repaired, or you have a terrible toothache that keeps you up all night, and you need to rush to the dentist. Your fund can help you cover these expenses right when they happen.