What is an Emergency Fund?

An Emergency Fund is cash reserve set aside for financial emergencies, typically 6 months' worth.

Why do I need an Emergency Fund?

Emergency Funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an Emergency Fund if you have debt, because it can help you avoid borrowing more.

How much should I save?

The right amount for you depends on your financial circumstances, but a good rule of thumb is to have enough to cover 6 months’ worth of living expenses.

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