What Is the Power of Emergency Funds?

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This blog is another opportunity to feel grateful. Thank you, dear Universe, you continue to bless me with recovery and health.

Everyone dreams of finding the pot of gold at the end of the rainbow although finding either is impossible. The desire for such a discovery has sufficed to power the efforts of many seekers of fortune.

Indeed, in an earlier part of my life, I too was similarly expanding myself. Only, I had to worry about keeping safe what little gold – wealth – I had found, and for urgent reasons!

At the peak of my professional life, I was diagnosed with a rare disease called Isaacs’ Syndrome. Isaacs’ is a neuromuscular health condition that stems from muscle hyperactivity. My lift post-diagnosis underwent a drastic change. In the process, I also discovered that I had Lyme disease. Lyme is a bacterial illness that gets transmitted through ticks. I was also accompanied by Glaucoma. Glaucoma is an eye-related disease that damages the optic nerves. And Membranous Glomerulonephritis is a progressive kidney disease.

Understanding the Financial Impact, a little better:

A family’s financial health is the most affected, when someone in the family gets diagnosed with a chronic or rare disease. At times, families experience severe impacts and use personal savings and take debt. They cut back on household expenses and savings. Also, meeting their long-term goals suffers a setback.

The costs associated with medical treatments, medications, and specialized care are very high. This pinches much more if there is a potential loss of income due to the inability to work altogether.

For many reasons, it was scary when my doctors addressed me as ‘rare’. It was instantly that my illness became the illness of my family. As a family, we experienced countless challenges. Each one had many unanswered questions about the entire situation – my health, career, and above all meeting the current cash flows. Any description of those spine-chilling memories would be an underestimate. No one could truly understand, no matter how I explained it.

The diagnosis of Isaacs’ Syndrome is often associated with many unforeseen costs. I was unable to take part in my work life which affected my financial stability as a result.

Why investing effectively plays a significant role in managing health:

During unprecedented times, everything seems to go out of control. However, managing our money and how we can future-proof our finances become crucial.

The concept of financial planning. It is a process. It identifies, evaluates, and implements the present and future investments. It very well aligns with the cash flows. The key is to ensure the availability of funds when required. It supports reaching defined goals and maximizes the utility of resources.

Let’s find out what exactly is a financial safety net or Emergency fund.

A good financial plan takes care of and helps in creating an emergency fund.

An emergency fund acts as a financial cushion during unforeseen events. It takes care of unexpected expenses such as any family crisis or medical situation. It helps a person to avoid unnecessary financial struggles during tough times.

My father always preferred his old ways of money management. However, as a banker, I was always taught to understand the nitty-gritty of emergencies.

I invested my money through proper financial planning. The portfolio’s risk-managing tools were effectively equipped. It had answers to my life-distracting situation and had reserved funds for emergencies.

There was an option of a contingency fund for unexpected expenditures. Additionally, I had the option of my health insurance. It could pay my pre-and-post hospital bills.

Building a Strong Financial Plan

The greatest investors of all time adhered to proper planning. They demonstrated a disciplinary financial approach that will never go out of vogue.

Building a strong financial plan helps us reach our life goals. It is equipped to handle emergencies and help retire comfortably. Certain major purchases and providing for children’s education can be taken care of. Often, it has been seen as the key to a successful life.

I decided to park my contingency funds in debt with fixed returns that offered easy liquidity options with minimum hassles.

As it was a first-hand experience for everyone, we as a family had many learnings to cope better with future modalities:

  • effective communication between members is the key.

  • follow the divide-and-conquer policy by distributing the excess workload!

  • positivity enhances the decision-making process.

  • a clear purpose defined financial plan can be a source of motivation.

  • everyone’s situation is unique, don’t get carried away by peer groups and get hungry to keep wallets full of time to time.

  • it is optimistic to look at situations with hope but not all situations offer opportunities.

  • a targeted approach is the way toward financial freedom and, therefore, plan expenditures better instead of spending more.

I have experienced how a strong financial plan can streamline one’s wealth and percolate down to a beneficial health journey.

Rare conditions are showing up more often and the cost of treatment and hospital assistance is rising in tandem.


The views expressed in this article are the author’s own and do not represent any kind of medical advice.

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