There are two types of an emergency fund. Short term emergency fund where you might withdraw for an immediate emergency and a long-term emergency fund which you might need when you lose a job or face a natural disaster. Any fund which you cannot access immediately goes into long term emergency fund. An emergency fund is not used for entertainment purpose. It is identified and used only for true emergency purposes such as job loss, natural disaster, unexpected home or car repairs, failure of major electronic appliance, sudden need to travel, etc. One might be confused if he/she must invest the emergency fund or leave it as it is. Here are some ideas on what to do with your emergency fund.
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