by Michelle Lynne Smith

Created on: May 08, 2009   Last Updated: August 08, 2009

Seen as a necessary evil by some, money does indeed make the world go round. People marry and divorce because of it, get killed for it, and view life as impossible without it. Most people also find that saving it is a lot harder and less fun than spending it, although just as important.

Life has a funny way of throwing things at you when you least expect them, and the effects can sometimes be devastating. Often, these little emergencies can turn out to be extremely costly, and not having the money to deal with them can make already bad situations a lot worse. Some have to be dealt with right away whether you have the money to pay for them or not. If someone in your family becomes ill suddenly, the bills can start adding up quickly. Hospital stays alone can cost a few thousand dollars for just a couple days. That's not taking into account any treatment received, specialists or medications once you leave.

When things like this happen, and people don't have any money saved up, usually one of two things happens. They put off fixing the problem or they use credit to pay for it. Both of these are undesirable options, and can have a huge impact on your financial future for years to come.

The first option is a lot like the person who discovers a small problem with their car but doesn't have the money to fix it. So

they ignore it, until eventually it gets worse and either the car needs to be replaced or it costs a lot more than the initial problem would have cost to get fixed. Now, not only do you have to pay a lot more money than you would have originally, but you might also be without a vehicle for as long as it takes to fix or replace it. If a person has money saved up for problems like these, it's possible to avoid some emergencies down the road.

The second option is using credit to handle their situation, which has been the financial downfall of millions across the country. People get into the habit of letting credit cards bail them out whenever they need money, and before they know it, they've maxed out all their cards and owe thousands of dollars. Between new purchases and finance charges, the balance never seems to go down, and what started as a solution to a problem can turn into a lifetime of debt.

However, having money saved up can eliminate all of these problems. Even something as simple as putting $25 into a savings account every paycheck can make a difference when you really need the money. Being disciplined with the money, and making sure it's only used when absolutely necessary can ensure that you and your family are financially secure, even in the worst of times.

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