Reason #1 Job Loss

 The end of the year can mean the payout of end-of-year bonuses and other perks to employees. Unfortunately, it can also be when companies trim their workforce and lay off some of their workers. It is vital to have at least six months of expenses saved up in the case of job loss. Ideally, the savings should be in an easily accessible and liquid account such as a standard savings account. 

 You do not want to dip into retirement or long-term investment accounts to deal with emergencies. Withdrawing from retirement accounts before retirement carries a hefty penalty. Having to sell long-term investments during a down-market can also wreak havoc on the assets you have built up over the years. You should also avoid going into debt to deal with a job loss. Protect yourself, your family, and your retirement and investments by having a nice cushion of at least six months’ worth of expenses in an easily accessible savings account. 

Reason #2 Unexpected Death Or Disability

 Things may be going well now, but what would happen if your spouse died or if you become disabled and unable to work? Life insurance is an excellent way to hedge against the death of a spouse who is the breadwinner. It will provide the surviving spouse and children with money that can be used to pay for their schooling and other essential expenses. Disability insurance is far less common than life insurance. Still, it is something to consider, especially if you work in a more dangerous job environment. If it brings you peace of mind, consider adding disability insurance to protect yourself against the loss of the ability to work. 

 Reason #3 Not Savings For Retirement

 Imagine you are at retirement age, but you have little to no money saved up for the retirement you wished to have. To enjoy your golden years, you need to set aside enough money to cover the lifestyle you want to enjoy in retirement. Healthcare costs can be a significant contributing factor in our senior years. Make sure you consider this when planning for retirement. The best way to ensure you have enough savings for retirement is to start saving early and sticking to a goal.