Introduction to Emergency Fund
An emergency fund is a certain sum of money which you set aside to use it in case of an emergency. You need to be cautious where you put your emergency money. Most people put it in a savings account and not confuse it with their money in the current account and use it for their daily expenses. Some feel they can invest out of their emergency fund as it will fetch them some good returns until they need it in some emergency. As per the expert’s suggestion, an emergency fund is saving at least three to six months of total earnings or expenses in advance that will come in handy while we need it.
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