What is a Financial Emergency Fund?
What is a Financial Emergency Fund?
A financial emergency fund is money set aside to cover unexpected expenses.
A financial emergency fund is money set aside to cover unexpected expenses.
It acts as a safety net during emergencies like medical bills, job loss, or sudden repairs.
It acts as a safety net during emergencies like medical bills, job loss, or sudden repairs.
Why is it important? – Protects you from debt – Provides peace of mind – Keeps your finances stable
Why is it important?
– Protects you from debt
– Provides peace of mind
– Keeps your finances stable
How much should you save?
Experts recommend 3 to 6 months of living expenses.
How much should you save?
Experts recommend 3 to 6 months of living expenses.
Where to keep it? – Savings account – Liquid funds – Easily accessible options
Where to keep it? – Savings account – Liquid funds – Easily accessible options
What not to do? – Don’t invest in risky assets – Don’t mix it with regular savings
What not to do?
– Don’t invest in risky assets
– Don’t mix it with regular savings
Conclusion
Conclusion
A financial emergency fund is your shield against life’s uncertainties. Start building yours today!
A financial emergency fund is your shield against life’s uncertainties. Start building yours today!
Personal Finance Basics: How to Start Managing Your Money
Personal Finance Basics: How to Start Managing Your Money
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