Do I Need an Emergency Fund if I Have a High-Paying Job?

It's important to have money -- and a decent chunk of it -- to fall back on in the event of an emergency situation or expense. A recent SecureSave survey, however, finds that many Americans don't. An estimated 67%, in fact, don't have enough cash in savings to cover a $400 bill that pops up out of the blue.

The problem with not having an emergency fund is that you might be forced into credit card debt when unexpected bills pop up. And credit card debt can be very costly, not to mention damage your credit score.

But what if you happen to have a high-paying job? In that situation, you may be more equipped to handle a surprise expense than someone earning a lower wage. But having a higher salary does not mean you don't need an emergency fund.

You still need money to fall back on

Whether you earn $30,000 a year or $300,000 a year, it's important to have money in the bank in case you lose your job or encounter a really big bill your paycheck can't cover. Now, if you earn $30,000 a year and are hit with an unexpected car repair costing $500, you might end up with credit card debt in the absence of an emergency fund. If you earn $300,000 a year, a surprise $500 expense might be something you can pay for out of your salary without having to risk debt. But what if you end up needing a $5,000 repair? Even with a higher paycheck, you may not earn enough to cover that sort of cost.

Similarly, what if you were to lose your job for a period of time? Without savings, you might quickly fall behind on your bills, resulting in a world of debt and long-term financial repercussions.

What's more, people with higher-paying jobs commonly spend more than people who earn less. So if you were to lose your job, you might then get stuck with an expensive mortgage and car payment to cover. You need savings in case that happens. Without savings, you might risk losing your vehicle and home.

Use your higher salary to your advantage

When you only earn $30,000 a year, it can be difficult to carve out money for an emergency fund. But when you earn a high salary, there's more opportunity to spend carefully and stick some of your earnings into the bank.

If you don't have an emergency fund yet, aim for enough savings to cover at least three full months of living expenses. In fact, you may want to aim even higher, the reason being that if you were to lose your job, it might take longer than three months to find a new role with a high enough salary to meet your needs. So if you're able to sock away enough money to cover more like six months' worth of bills, you'll be even more protected.

A higher paycheck might give you more leeway to cover expenses on a whim. But you're still taking a really big risk if you don't put together any sort of emergency fund at all.