Introduction
In today’s unpredictable world, having a financial safety net is more important than ever. Life is full of unexpected emergencies and expenses that can cause significant financial strain if not properly managed. This is where emergency funds come into play ─ they act as a safety net to protect you from financial hardships.
What is an emergency fund?
An emergency fund is a pool of money that is set aside for unexpected expenses or emergencies. It is specifically designated to cover expenses that are not part of your regular budget, such as medical bills, car repairs, home repairs, or sudden unemployment. The purpose of an emergency fund is to provide you with peace of mind knowing that you have a financial buffer in case of unforeseen circumstances.
