Everybody always talks about the importance of having an emergency fund. Ask any expert and you’ll get the same answer – start building your emergency fund as soon as possible.

But if you don’t understand the importance of having an emergency fund, you’ll never make it a priority. Let’s look at 5 of the biggest ways having an emergency fund can change your life.

It Will Help You Sleep Better At Night

Many Americans lose sleep over their finances. The majority of people feel their finances are controlling them, instead of them controlling their finances. That’s a pretty powerless position to be in.

Emergency funds can help shift that balance of power though. Imagine how much better you’d sleep at night knowing you had a hefty $5,000 or $10,000 sitting in the bank if you ever needed to tap into it.

That would be enough to help anyone sleep more soundly. The security and peace of mind an emergency fund can give you is one of the best reasons to have one. There’s enough to worry about in this world without adding money to the list.

It Can Protect Your Credit Score

Your credit score is one of the biggest deciding factors when it comes to whether you can land a loan and what the rate will be. An emergency fund can let you keep that credit score in the excellent category you need it to be in.

If you lose your job, your emergency fund will help you keep paying your bills on time until you can land a new job. That will keep your credit score intact.

It Can Help You Pursue a Life-Changing Move

If you’re offered the job of your dreams out of state in an expensive city, you might not be able to take that offer if you don’t have the funds saved up. That emergency fund can help you make the deposit and first month’s rent on a new apartment, hire a moving van to cart away all your possessions, and tide you over until you get your first paycheck.

It Can Open Up Medical Options

Do you have a medical condition that’s bothering you? It might not be severe enough for an emergency surgery, but your doctor has been warning you that you should take care of that hernia at some point? An emergency fund can let you get the surgery that’s going to make you feel better without creating a huge drain on your finances.

The beauty of an emergency fund is that you won’t have to go further into debt when you are facing a medical crisis.

It Can Let You Choose a New Career Path

Have you finally gotten tired of your one-dimensional job with the glass ceiling? If so, your emergency fund may come to your rescue.

Whether you’ve had it with your current career or you want to pursue something more lucrative, an emergency fund can be a great start toward pursuing the education you need to make your dream career a reality.