Yusra3
Banned
An emergency fund is simply a savings account that you set aside for unexpected expenses. It's important to have this money easily accessible in case you need it, so it's usually kept in a savings account or a short-term certificate of deposit.
Ideally, your emergency fund should cover three to six months of living expenses. This may seem like a lot, but remember that your goal is to have peace of mind in knowing that you can cover unexpected costs without going into debt.
When to Use Your Emergency Fund
The emergency fund is for, well, emergencies. That means if something unexpected and expensive comes up, you can use your emergency fund to cover the cost instead of going into debt. Some examples of when you might need to use your emergency fund include:
• Unexpected medical bills
• A major car repair
• A job loss
• A natural disaster
Basically, if something happens that is out of the ordinary and puts a strain on your finances, that's when you would tap into your emergency fund.
Ideally, your emergency fund should cover three to six months of living expenses. This may seem like a lot, but remember that your goal is to have peace of mind in knowing that you can cover unexpected costs without going into debt.
When to Use Your Emergency Fund
The emergency fund is for, well, emergencies. That means if something unexpected and expensive comes up, you can use your emergency fund to cover the cost instead of going into debt. Some examples of when you might need to use your emergency fund include:
• Unexpected medical bills
• A major car repair
• A job loss
• A natural disaster
Basically, if something happens that is out of the ordinary and puts a strain on your finances, that's when you would tap into your emergency fund.
