An emergency fund is the money you save up to cover unexpected expenses. Emergencies can range from a job loss to a medical problem, from car repairs to an injury, and more. While an emergency fund is a must in today’s economy, many Canadians do not have enough savings to pay for unforeseen expenses.
If you run into a cash shortfall, consider applying for a personal loan online. OntarioCASH offers a fast and easy online application process, whereby you can connect with online installment lenders across Canada. Submit your application now. You don’t need a good credit score to qualify!
How Canadians Are Doing
Statistics Canada sounds some warnings about Canadians’ financial health. In 2019, pre-pandemic, the majority of Canadians (65%) reported being able to keep up with their bills and payments. However, that leaves more than one-third (35%) who are falling behind every month. This is a significant proportion of the population, numbering in the millions.
Almost two-thirds (64%) reported having an emergency fund in 2019, which again leaves out more than one-third of the population. More than 1 in 3 Canadians have no money saved for an emergency. Generally speaking, Canadians with household incomes of at least $40,000 and those who’ve paid off their mortgage are more likely to have an emergency fund. In the meantime, individuals who have never married, are separated, or divorced, as well as those who cohabit with a common-law partner, are less likely to have such funds.
This leaves many Canadians vulnerable to sudden reversals of fortune. Life is unpredictable, so having an emergency fund is essential to safeguard your future and your peace of mind.
Tips on Building Your Emergency Fund
Start by opening a savings account. Preferably, you can earn interest on the money you save in this account. It must also have no penalties for withdrawals. A monthly budget can help – set aside a small amount each week or each month to put into this account, which should be different from your day-to-day chequing account. Over time, even a small amount of weekly or monthly savings will add up, allowing you to cover most emergencies.
Monitoring your credit score is another important aspect of maintaining good financial health. Sign up for Credit Verify today to track your credit score and other personal financial information.
Conclusion
Millions of Canadians do not have any money set aside for emergencies. Do not be part of this percentage group – work on building your emergency fund, slowly but steadily.
Everyone’s financial circumstances are different. We understand that sometimes, people need a little extra help. Consider applying for an online personal loan via OntarioCASH. We offer a quick and easy online application process and do not check your credit score or credit report during our application process. Submit your application today and get connected with online installment lenders anywhere in Canada.
