Hello long-lost friends! I am back after a couple of weeks of studying, exams, and wedding travel. And since my last two weeks have been somewhat chaotic, it seems like a good time to talk about how to keep your financial sanity during times of surprise expenses.
The issue of emergency funds among personal finance bloggers tends to be a bit divided – with some of the opinion that emergency funds are crucial and others writing that they are not necessary at all. While there are compelling arguments for both sides, I must admit that I am in the first camp – for me, an emergency fund is a must-have.
The good news about emergency funds in Canada is that Canadians have an average of $41,694 in emergency savings. That’s awesome.
The not-so-good news is that a quarter of Canadians don’t have anything set aside for emergencies at all. And of those who do, almost half have less than $5000 saved. Not awesome. (source)