To be honest, no one really wants to think about those negative ‘what if’ scenarios in life. We prefer to plan for our future, work toward achieving our goals and aspirations, and let the possibilities that something bad could happen be left to the drawer you never really want to look in.
Reality is a much different creature though. It rides along with us and will bite when it feels like it. Does this mean that everyone should plan for the worst-case scenario? Of course not. However, if you’re a responsible adult, if you have health insurance, life insurance, home insurance, and so on, then you already do make some contingency plans for whatever might go wrong in the future.
Building a cash reserve for emergencies is really no different. The problem is that we don’t tend to focus on it as a matter of budgeting. Instead, we develop a savings account, invest in retirement IRAs, and go about our busy lives as though nothing bad could ever happen.
O - Catch up on whichever steps you might be a little behind on.