An emergency fund is money you can count on to quickly withdraw and pay for an unexpected financial burden.
While we all hope that our financial situation remains secure, life does have a tendency to kick up a storm every once in a while. Sometimes that might be unique to you – your company is re-organized and suddenly your career path is thrown for a loop, an unexpected medical expense crops up and it’s not covered by your insurance provider, or a family member needs help and is relying on you to be there. Other times, those stormy periods affect the entire economy and you’re caught in the downturn – the company goes under, no bonuses this year.
An emergency fund helps you manage those ups and downs by providing a savings buffer. You can find out more on the importance of emergency funds on our blog.