Why do you need a reserve fund?

Everyone knows a reserve fund can be extremely useful in various unpredictable situations. This fund is a certain amount of savings that is supposed to provide you with finances during the period of time when you do not have an opportunity to generate income. It is obvious how crucial a reserve fund.

Yet, the problem is that it is rather difficult to save money for the purpose of having a reserve fund. It is a way easier to save money for some other goals such as an expensive purchase or a trip of your dream. Yet, when it comes to saving money just in case something bad happens to you, this can be rather challenging to many people.

This article will help you to explore possible scenarios in which you will be really glad you have your reserve fund.


Another unpleasant scenario is falling ill. Depending on the country where you live, there are different regulations for calculating your income while you are staying ill at home. in some places of the world you can still earn the total salary even though you are not capable of working for some period, however, usually it is possible only after a certain amount of years of experience.

There are also many other types of contracts as well as unofficial arrangements for work that will not protect you in the time of illness.

Furthermore, if you are from one of the countries that are offering access to medical help to their citizens, you might still need to reach out for other specialists, medications and treatment that are not covered by your insurance.

Lawyer’s services

Even if you regard yourself as a very obedient person, you are still not protected from various scenarios in which you will have to protect yourself at court. In such situations, you will really want to have a lawyer while such services can be rather costly.

Possible events that can lead to such a situation are quite different. It can be a case when you have helped someone in a conflict protecting this person from attackers who are now trying to blame you for the event at court. There are many such examples and its will be really great for you to have money to be able to cover them.

A difficult situation in your family

Many things can go wrong in relationships and sometimes the problem can reach the extent when you will need to escape from your previous place of living as quickly as possible. Not having any reserve fund is actually a problem of many victims of aggressive partners who also have financial power over them. This becomes even more difficult if a person has to move out with children and there is no one to go to.

It is strongly recommended to keep some funds for such emergencies especially if you have already noticed some disturbing behaviour of your partner.


Death of a close person is the worst-case scenario and it can generate a lot of expenses. The funeral ceremony itself is a rather costly tradition that you will have to pay for. It might happen that this person lived in a different city or even country and you are now responsible for organising the funeral which becomes even more expensive under such circumstances.

Finally, if the late person was really a very close one to you, you might also develop a serious depression that will not allow you to work normally and can be detrimental for your budget.