When you think about it every emergency situation requires money to solve the problem or mitigate the circumstances. Whether it is a car accident, storm damage to your home, an emergency room visit, a toothache, or a job loss, money will likely be needed to address the problem at some point. Even of you have insurance, copays, medications, or a car rental may require a monetary payment upfront for the insurance company to reimburse you at a later date. If you have an emergency savings account you can avoid using your credit cards or relying on a payday loan. If you do not have an emergency savings account you will likely have to borrow the money, which often leads to mounting debt and loans with high interest rates. During this tax season, think about taking part of your tax refund to open an emergency savings account. To prepare ahead, set up rules to live by to access the emergency funds. This means the money should only be used for emergencies and never for personal indulgences such as shopping, eating out, or for a vacation. Individuals who have an emergency savings account are less likely to have large credit card debt or high interest payday loans. Think about the benefits of saving for emergencies as another way of staying out of debt. After tax season has come and gone you will be able to remember where your money went.