An emergency fund is a reserve of money for you to use in an emergency.
Having an emergency fund is always a good idea because it will help you avoid taking out high-interest loans or credit cards when you need cash.
Emergency funds can be for both significant and minor emergencies. It is up to the individual how much they want to save and what they would like the funds to be for, like whether they want it to be general or specific.
This fund is crucial because it’s a safety net you can use in an emergency. It ensures you’ll have enough money to cover your expenses, such as mortgage payments and groceries if you lose your job or experience some other unexpected financial setback.
